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Working Mass sat down with Katie Murphy, President of the Massachusetts Nurses Association, to discuss how the crisis at Steward Health Care is impacting patients and frontline workers.
By George Fields
Democrats Won’t Stop Nashoba Valley or Carney Hospital Closures
Steward Health Care, the largest physician-owned for-profit hospital network in the U.S., faces a severe crisis that has led to the closure of several of its hospitals. In late July, the company announced plans to close Carney Hospital in Boston and Nashoba Valley Health Center in Ayer by 31 August, eliminating 1250 jobs. This is despite state law requiring 120 days’ notice for hospital closures. At the time of the announcement, Steward CEO Ralph de la Torre was watching the Olympics from the Palace of Versailles, per NBC Boston.
The situation has prompted calls for the Commonwealth to declare a state of emergency and petition the courts to take over. David Schildmeier, a spokesperson for the Massachusetts Nurses Association, said the state could tap into its $8 billion rainy day fund to keep both hospitals open whilst searching for a buyer.
On 17 August Governor Healey announced a plan to seize ownership of St. Elizabeth’s in Brighton via eminent domain and transfer ownership to Boston Medical Center. When asked on Radio Boston why the state could not do the same for Nashoba or Carney, the Governor said no organization has offered to administer them in the long term and that the state could not run them indefinitely.
The crisis is linked to the company’s history, rooted in Cerberus Capital Management’s controversial 2010 buyout of the Catholic hospital network Caritas Christi. This buyout transformed Caritas into a for-profit entity, with Steward expanding nationwide. Steward accumulated heavy debts to finance the expansion and increasingly struggled to pay rent on its properties, ultimately filing for bankruptcy in May 2023.
Devens Hearing
A hearing was held on 15 August at 6 pm in Devens, Mass, to discuss the closing of Nashoba Valley Medical Center. The room reached its capacity of 450 people, with several more watching from the lobby. Both Steward executives and Department of Public Health officials were met with boos and jeers, with many chants of “It’s a very rainy day”, a reference to the state’s emergency fund.
Several speakers raised issues related to emergency services. The Pepperell Fire Chief outlined the potential financial drain on already scarce resources. For instance, the closure will lengthen wait times for 911 calls and require police to spend more time as first responders.
After praising the healthcare delivered by Nashoba Valley, the Leominster mayor stressed the importance of getting EMTs and paramedics to people. He said this could no longer be guaranteed after the hospital closure. Like other speakers, he was very critical of the Department of Public Health for not doing enough to stop the closure or mitigate its impacts. He was followed by the Fitchburg mayor, who echoed concerns about the closing’s potential impact on the community.
For details on the impact on staff and patients, Working Mass sat down with Katie Murphy, the President of the Massachusetts Nurses Association.
Interview with Katie Murphy, President of the Massachusetts Nurses Association
GF: Could you provide some overview of the causes behind the recent closures?
KM: It all comes back to private equity in healthcare. Whoever thought that would be a bad idea? Allowing private equity firms to invest in hospitals might seem like a way to bring in capital and improve facilities, but it often leads to the opposite outcome. The primary objective of private equity is to maximize profits rather than to deliver quality care. This profit-driven approach usually results in cost-cutting measures that directly affect the quality of patient care, such as reducing staff or limiting services. When a hospital becomes more focused on its financial performance than on the well-being of its patients, the community suffers.
Initially backed by the private equity firm Cerberus Capital Management, Steward Health Care was a clear example of this model in action. After a decade under private equity ownership, Steward was transitioned into a physician-owned hospital network in 2020. However, this did not resolve the financial issues, and the company ultimately filed for bankruptcy in May. The lack of transparency about their financial situation became evident when they announced the closure of Nashoba Valley Medical Center and Carney Hospital with just over a month’s notice, far short of the 120 days required by state law. This sudden and poorly communicated decision left both healthcare workers and patients in a state of uncertainty and panic.
GF: How will the closures of Steward Health Care hospitals impact nurses?
KM: The impact on nurses is profound. Many nurses at Nashoba and Carney have dedicated their careers to these hospitals. They have built deep connections with their colleagues, patients, and the broader community. The thought of losing their jobs is terrifying, especially for those who have worked at these hospitals for many years. While some nurses might be able to find employment elsewhere, it’s not just about finding another job—it’s about uprooting their lives and potentially having to commute much longer distances or even move.
Nashoba, in particular, is a community hospital that hires many residents. For these nurses, the closure means job loss and potentially disrupting their lives. They may be unable to afford to move to more expensive areas where jobs are available, leading to longer and more stressful commutes. This could also result in a loss of the strong community ties that are vital to the hospital’s mission and the well-being of its patients.
GF: Can you give any insight into how it will affect patients?
KM: The closure of these hospitals will have a devastating impact on patients, particularly those from marginalized communities. There is a lot of research showing that healthcare outcomes improve when providers look and speak like us. For instance, in areas with large Haitian communities, having healthcare providers who speak Haitian Creole can significantly improve the quality of care. When patients are forced to travel further to access healthcare, they are less likely to receive care that meets their cultural and linguistic needs, leading to poorer health outcomes.
Moreover, in emergencies, time is of the essence. The farther a patient has to travel to receive care, the greater the risk of complications or even death. For patients requiring urgent care, the closure of their local hospital could mean the difference between life and death. The community’s health is put at severe risk when hospitals that serve their needs are shut down, and this is something we cannot take lightly.
GF: Can you elaborate on how this will impact emergency care?
KM: The impact on emergency care will be significant and worrying. The healthcare system in New England is already stretched thin, with many hospitals operating at or near capacity. The closure of any hospital puts additional strain on the remaining facilities. This is particularly true for emergency medical services (EMS), where time and proximity are critical factors.
With fewer hospitals available, EMS teams will face longer travel times and overcrowded emergency rooms, making it much more difficult to provide timely care. This could lead to increased wait times for patients, which is particularly dangerous for those experiencing life-threatening conditions like heart attacks or strokes. The added strain on EMS services could also lead to burnout among emergency workers, further exacerbating the crisis. We are looking at a scenario where these hospitals’ closures could significantly deteriorate the quality of emergency care across the region.
GF: Why are you a DSA member?
KM: Well, I admit I am not the most active member. My parents instilled in me the importance of standing up for what is right, and I began protesting against the Vietnam War in my teens. Joining DSA was a natural extension of my lifelong dedication to fighting for social justice and equality.
DSA has been instrumental in mobilizing support for nurses and other workers, particularly during our picket lines and strikes. Their members, especially those in other unions like the teachers’ union, have shown tremendous solidarity with us. They understand that the struggles of nurses are part of a broader fight for workers’ rights and better conditions for all. This kind of support is invaluable, and it’s one of the reasons I’m proud to be associated with DSA. They are a powerful ally in our ongoing fight to protect and improve healthcare for everyone.
George Fields is a member of Boston DSA.
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