Home Editor's Choice Federal bankruptcy judge approves Lifespan’s bid to buy two Steward hospitals

Federal bankruptcy judge approves Lifespan’s bid to buy two Steward hospitals

By

Katie Castellani

-

09/04/2024

St-Anne-Hospital-1 — LIFESPAN CORP.'S bid to buy two cash-strapped hospitals from Steward Health Care has earned approval from a federal bankruptcy court./ /COURTESY SAINT ANNE'S HOSPITAL

PROVIDENCE – Lifespan Corp.’s bid to buy two cash-strapped hospitals from Steward Health Care was approved Wednesday by a federal bankruptcy court. During a hearing in U.S. Bankruptcy Court in Houston, Judge Christopher Lopez approved the agreement Lifespan and Steward reached to transfer St. Anne’s Hospital in Fall River and Morton Hospital in Taunton to

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PROVIDENCE – Lifespan Corp.’s bid to buy two cash-strapped hospitals from Steward Health Care was approved Wednesday by a federal bankruptcy court. During a hearing in U.S. Bankruptcy Court in Houston, Judge Christopher Lopez approved the agreement Lifespan and Steward reached to transfer St. Anne’s Hospital in Fall River and Morton Hospital in Taunton to Lifespan’s control. Lopez’s approval comes days after Steward accepted Lifespan’s proposal to buy the hospitals for $175 million. While the agreement has passed the bankruptcy court it still needs federal approval, as well as both Massachusetts and Rhode Island regulatory approvals. That includes a determination of need by Massachusetts’ Department of Public Health and an expedited emergent review by the Massachusetts Health Policy Commission, according to Lifespan spokesperson Jessica Wharton. But Wednesday's approval marks a crucial step to Lifespan acquiring the hospitals from Steward, which filed for Chapter 11 bankruptcy in May. “We look forward to incorporating these two hospitals into the Lifespan system and are committed to providing exceptional patient care to the residents of both Massachusetts and Rhode Island,” Wharton said. The transaction must be finalized by Sept. 30 or the buyers could terminate the sale, according to the asset-purchase agreement filed Aug. 29. Peter Markell, Lifespan chief financial officer, previously said he was confident that the deadline could be met. Along with Lifespan's proposal, Judge Lopez approved Boston Medical Center’s proposal to buy St. Elizabeth’s Medical Center and Good Samaritan Medical Center, along with Lawrence General Hospital’s bid to purchase Holy Family Hospitals. The total sale price for all the Massachusetts hospitals is $343 million. The court also approved $42 million in funding from Massachusetts to help the hospitals stay open through September. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.