‘Victims of Ponzi scheme,’ Haverhill mayor says of Steward’s financial crisis


MORNING, MATTRILLIONEED WCVB NEWSCENTER FIVE. ALL RIGHTY, MATT, LOTS OF FOLKS WATCHING THAT THIS MORNING. THANK YOU. STATE LEADERS THERE WORKING TO FILL THE ANTICIPATED GAP ONCE STEWART HEALTH CARE MOVES FORWARD WITH ITS PLANS TO SHUT DOWN HOSPITALS, THE DEPARTMENT OF PUBLIC HEALTH IS HOLDING A HEARING ON THE PLAN TO CLOSE NEW ENGLAND SINAI HOSPITAL, THE ACUTE LONG TERME CARE AND REHAB FACILITY PLANS TO CLOSE BY APRIL 2ND. THE PUBLIC HEALTH DEPARTMENT WILL BE HOLDING ITS HEARING TONIGHT AT SIX. NOW, LAST MONTH, THE EMBATTLED HEALTH CARE SYSTEM ANNOUNCED IT HAD LOST $22 MILLION ON HOSPITAL OPERATIONS. MEANWHILE, THE CONCERNS STRETCH ACROSS ALL NINE OF STUART HEALTH’S HOSPITALS IN MASSACHUSETTS. THE COMPANY REPORTEDLY OWES $50 MILLION IN UNPAID RENT. HAVERHILL’S MAYOR SAYS EMPLOYEES AND PATIENTS ARE ALREADY FEELING THE WEIGHT OF STUART’S FINANCIAL CRISIS. FOR MONTHS. THE JANITORIAL SERVICE, THOSE FOLKS WERE BUYING TOILET PAPER FOR PATIENTS, UM, WITH THEIR OWN MONEY. THIS IS A UNBELIEVABLE SITUATION. WE FIND OURSELVES IN. UH, I THINK WE ARE PERHAPS THE VICTIMS OF A PONZI SCHEME. STUART OWNS HOLY FAMILY HOSPITAL CAMPUSES IN HAVERHILL AND METHUEN. HAVERHILL CITY COUNCIL PRESIDENT SAYS AS STUART REPRESENTATIVE TOLD HIM THE HOSPITAL WILL NOT

State leaders are working to fill anticipated gaps once Steward Health Care moves forward with plans to shut down hospitals, including New England Sinai Hospital in Stoughton, Massachusetts. The Department of Public Health is holding a hearing Wednesday at 6 p.m. on the plan to close the facility. The acute long-term care and rehab facility is scheduled to close by April 2. Last month, the embattled health care system announced it had lost $22 million on hospital operations. Dallas-based Steward Health Care, which reportedly owes $50 million in unpaid rent, operates Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family in Haverhill and Methuen, Morton Hospital in Taunton, Nashoba Valley Medical Center, New England Sinai Hospital in Stoughton, Norwood Hospital, Saint Anne’s Hospital in Fall River and St. Elizabeth’s Medical Center in Brighton.Haverhill’s mayor said employees and patients are already feeling the weight of Steward’s financial crisis.”For months, the janitorial service, those folks, were buying toilet paper for patients with their own money. This is an unbelievable situation we find ourselves in. I think we are, perhaps, the victims of a Ponzi scheme,” Haverhill Mayor Melinda Barrett said. Haverhill’s City Council president said a Steward representative told him the hospital will not immediately close. Officials are hoping for an official update this week.Steward employs more than 16,000 nurses, doctors, and other frontline, essential health care workers in the state.

State leaders are working to fill anticipated gaps once Steward Health Care moves forward with plans to shut down hospitals, including New England Sinai Hospital in Stoughton, Massachusetts.

The Department of Public Health is holding a hearing Wednesday at 6 p.m. on the plan to close the facility. The acute long-term care and rehab facility is scheduled to close by April 2.

Last month, the embattled health care system announced it had lost $22 million on hospital operations.

Dallas-based Steward Health Care, which reportedly owes $50 million in unpaid rent, operates Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family in Haverhill and Methuen, Morton Hospital in Taunton, Nashoba Valley Medical Center, New England Sinai Hospital in Stoughton, Norwood Hospital, Saint Anne’s Hospital in Fall River and St. Elizabeth’s Medical Center in Brighton.

Haverhill’s mayor said employees and patients are already feeling the weight of Steward’s financial crisis.

“For months, the janitorial service, those folks, were buying toilet paper for patients with their own money. This is an unbelievable situation we find ourselves in. I think we are, perhaps, the victims of a Ponzi scheme,” Haverhill Mayor Melinda Barrett said.

Haverhill’s City Council president said a Steward representative told him the hospital will not immediately close. Officials are hoping for an official update this week.

Steward employs more than 16,000 nurses, doctors, and other frontline, essential health care workers in the state.


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