Is UMass Memorial Health interested in buying Nashoba hospital? Here are the details

WORCESTER — It appears UMass Memorial Health may have talked with the state about buying Nashoba Valley Medical Center, the hospital owned by bankrupt Steward Health Care that is slated to close at the end of this month.

John McDonough, a professor at the Harvard T.H. Chan School of Public Health and former state lawmaker, said that based on his confidential sources it appears UMass had talks with the state about Nashoba, but the outcome was “not optimal.”

"I don’t have a clear answer on that,” said McDonough when asked to clarify what “not optimal” means.

UMass declined a request for comment on whether it made inquiries to the state on Nashoba, beyond what is communicated in a prepared statement. The hospital system said in Wednesday's statement that it doesn't have any plans to bid on the hospital.

“We recognize the far-reaching impacts that the closure of any of Steward’s hospitals could have on patient access to essential services in the Commonwealth of Massachusetts. While we do not have any plans to submit a bid for one of Steward Health Care’s hospitals, we are committed to working with the state to maintain access to high-quality, affordable health care services.”

Gov. Maura Healey's office did not directly respond to several questions, including a request for comment on any direct talks with UMass about Nashoba. It sent a prepared statement from Robbie Goldstein, commissioner of the state Department of Public Health, that blamed Steward and the bankruptcy process that didn't allow for qualified bids for Nashoba.

"Any hospital closure is hard for the community it serves and, looking ahead, DPH will continue efforts to help residents access care and support at neighboring hospitals and surrounding health centers as they work to welcome more patients," said the statement.

It continued: "As the Nashoba closure nears, we will continue to work with residents so they understand how and where to access safe, reliable care, and with regional health care leaders to ensure they have the resources they need to provide care to patients. We will also remain in conversation with communities they prepare for this new chapter.”

State Sen. Jamie Eldridge, D-Marlborough, whose district includes Nashoba, has been pushing the state to keep Nashoba open until a legitimate buyer steps forward. Eldridge isn’t aware of any specific talks between UMass and the state about Nashoba.

However, he thinks UMass buying the hospital makes sense.

“It’s not a secret many of us as legislators in the region of Nashoba think that UMass Memorial is a natural fit for purchasing Nashoba Valley Medical Center,” he said.

Letter to Healey: Keep Nashoba open

Eldridge and a contingent of state lawmakers in North Central Massachusetts sent a letter Wednesday to Healey that encouraged the state to invest money in Nashoba to keep it running until legitimate buyers make an offer.

"Credible” health care leaders confirmed interest from potential buyers in Nashoba, according to the letter. It also said lawmakers received offers of private financial support from corporations, foundations and regional philanthropists.

“Although these donors wish to remain anonymous for now, they will disclose their commitments to potential bidders,” said the letter.

No qualified bids have been made for Nashoba, according to Steward, and Healey has said publicly there is nothing she can do to stop closure on Aug. 31.

Besides Eldridge, other state senators who singed the letter include Edward Kennedy, D-1st Middlesex, and John Cronin, D-Lunenburg. Four state representatives signed the letter, including Danillo Sena, D-37th Middlesex; Margaret Scarsdale, D-Pepperell; Natalie Higgins, D-Leominster; and Michael Kushmerek, D-Fitchburg.

Eldridge sees an opening, targeting Healey’s remarks last week of her willingness to possibly pump state money into Nashoba if a qualified bidder were to “miraculously appear.”

“We need, at this point, for Governor Healey to continue to provide public assurances that if there are legitimate bidders for Nashoba Valley Medical Center, then there will be state financing to make the purchase happen, just as she did with St. Elizabeth's,” said Eldridge.

That reference is to the bankrupt Steward hospital in Boston that the state plans to take by eminent domain. Massachusetts wants to pay Steward $4.5 million and then transfer ownership to Boston Medical Center.

Eminent domain: tied up in court

Apollo Global Management, the private equity company that holds the leases on land and buildings at St. Elizabeth's Medical Center, rejected the eminent domain taking on Wednesday on the basis that $4.5 million is a low-ball offer. That means the taking could be tied up in legal limbo for months or years.

UMass Memorial Health declined to comment when asked if the state’s eminent domain strategy for St. Elizabeth's could potentially impact UMass’s interest in working with the Healey administration on a similar arrangement for Nashoba.

What happens after Aug. 31?

If Nashoba closes at the end of the month, there is the question of what happens to the property, especially since the state identified the Ayer area where the hospital is located as one of 10 regions in Massachusetts with the greatest health care disparities.

That designation is part of the Advancing Health Equity in Massachusetts program launched by Healey's administration in January.

If Nashoba can’t continue as a general acute care hospital that provides emergency care and other services, Paul Hattis, a senior fellow at the Lown Institute, a nonpartisan health care think tank, believes the state has a responsibility to ensure that what goes on the land helps meet the health needs of local residents.

That can include a range of services to address social determinants of health, said Hattis, like job training programs, counseling and other initiatives directly tied to a community’s quality of life.

“The state has a strong responsibility to create a plan for how the campus is used for the community’s health and well-being,” said Hattis.

Nashoba must remain

Nothing replaces a hospital, said Massachusetts Nurses Association spokesman David Schildmeir, the union pushing the state to keep Nashoba open. “Of course” was Schildmeir’s response when asked if the union would support alternative health services at the Nashoba property if the hospital shuts down on Aug. 31.

However, Schildmeir warned it takes years to replace hospital services after they’re gone. “There is no substitute to a hospital than keeping a hospital open to meet the needs of the community."

The state Department of Public health determined this week that Nashoba is an essential service to the communities it serves. That triggers a Steward response, but the state agency has no legal authority to force a hospital to stay open.

The essential service ruling follows last week's public hearing hosted by the state health department. Many in attendance blasted Steward for mismanagement as the root of Nashoba's problems.

As McDonough sees it, since the state has demonstrated it will put up the cash to keep St. Elizabeth’s afloat, it presents the question of what about doing the dame for Nashoba, with UMass Memorial Health a a natural part of the mix.

“It triggers the question, what about UMass?" said McDonough. "It’s kind of obvious. It doesn’t take a rocket scientist to put two and two together and wonder, What about this?"

Contact Henry Schwan at henry.schwan@telegram.com. Follow him on X: @henrytelegram.

This article originally appeared on Telegram & Gazette: UMass Memorial may have talked with state on buying Nashoba med center