In May of 2024, Steward Health Care announced that it had filed for bankruptcy protection; beginning a process through which the for-profit health system looked to restructure its debt and sell or close assets, including seven Massachusetts hospitals. The bankruptcy announcement, as well as the potential harm that Steward’s collapse would have on the state’s health care ecosystem, necessitated the development of a process to facilitate ownership transitions for Steward hospitals. Six months later, two Steward hospitals (Nashoba and Carney) have closed, while five hospitals (with two Holy Family locations) have been transferred to new owners.

The fallout from the Steward Health Care crisis in Massachusetts touches myriad health policy areas, including health care access, quality, financing, and oversight. However, the fate of former Steward hospitals also has major public finance implications during a time of great fiscal uncertainty in the state. This Bulletin outlines what we know – and what we don’t – about the state’s financial plan to transfer the operations of five hospitals to new providers.