Hopes for Norwood Hospital Inch Forward

Alison Kuznitz | SHNS

Looking to prevent another casualty of the Steward Health Care crisis, two lawmakers have begun to chart a new -- and yet potentially unlikely -- path for Norwood Hospital, which shuttered after devastating flooding in 2020.

Norwood Hospital was not involved in recent bankruptcy proceedings, which are resulting in most of Steward's Massachusetts hospitals being transferred to new owners.

But Sen. Mike Rush has filed a new proposal (SD 3414) that would ultimately see Norwood Hospital operated by UMass Memorial Health, his office told the News Service. Construction on a new hospital for Norwood began in late 2021 but was halted earlier this year.

The Senate referred Rush's petition Monday to the Committee on State Administration and Regulatory Oversight. The House has yet to act on an identical proposal (HD 5356) from Rep. John Rogers.

"While we have been open to cooperating with outside partners who may be interested in the project, we cannot idly wait for a buyer and allow the vacuum of care resulting from the hospital's closure to persist," Rush and Rogers said in a joint statement to the News Service.

"For this reason, we have filed legislation which would authorize the University of Massachusetts Building Authority to enter into a purchase agreement either for fair market value or through eminent domain to complete the construction of the hospital and have it operated under UMass Memorial Health Care, Inc. as 'UMass Memorial Health - Norwood Hospital,'" they continued. "In filing this legislation, we believe this provides an additional option to be considered for a reliable and expeditious pathway for the resumption of care in the area."

The lawmakers were not available Monday and their proposal appears to have already hit a major obstacle with UMass Memorial Health.

"UMass Memorial Health has no plans to take over Norwood Hospital and was not involved with the development or drafting of this legislation," the system said in a statement to the News Service Monday.

UMass Memorial Health, which describes itself as the largest health care system in central Massachusetts, is the clinical partner of UMass Chan Medical School.

UMass Memorial Health is separately involved in talks with state health officials about "reimagining care" at Nashoba Valley Medical Center in Ayer, one of two hospitals that Steward shuttered, the Healey administration said on Aug. 30.

Department of Public Health Commissioner Robbie Goldstein told the Public Health Council last week that Norwood Hospital still runs outpatients facilities, including for cancer care and rehab services.

"We are working hard to keep those facilities and those programs operational to prevent disruption of care to patients and to support the community," Goldstein had said.

Norwood's license expires on Nov. 5, according to a spokesperson for the Executive Office of Health and Human Services. The hospital's land is owned by Medical Properties Trust. Without offering specific details, the spokesperson said the Healey administration is "working on a solution that benefits patients in the area."'

MPT had said in January, before Steward declared bankruptcy, that it was working to collect about $50 million in unpaid rent from the company, excluding about $50 million more in deferred rent tied to the reconstruction of Norwood Hospital.

Rush and Rogers say they have worked with U.S. Rep. Stephen Lynch, local officials and residents to maintain a hospital presence in Norwood, warning the town and dozens of surrounding communities are currently situated in a "healthcare desert."

"Norwood Hospital was historically a profitable component of the Steward Healthcare system in Massachusetts," Rush and Rogers said. "What has begun to be built on this site, and has since stalled, is slated to be a state-of-the-art facility, being the first new hospital constructed in Massachusetts in nearly thirty years. Equally promising, the building remains untarnished by the challenges posed by Steward's negligent business practices."

Under their proposals, the University of Massachusetts Building Authority would be involved to issue bonds to buy and finish construction of Norwood Hospital. The facility would then be operated by UMass Memorial Health, a Rush aide said.

The bills propose emergency laws "necessary for the immediate preservation of the public health."

"Steward's recklessness must not continue to become ours," Rush and Rogers said. "We will advocate tirelessly for HD.5356/SD.3414 for the remainder of the 193rd General Court."

When Healey announced in mid-August deals to keep five Steward hospitals open, the governor had said Norwood was "not in the mix right now."

"Norwood right now is under bubble wrap," Healey had said at a press conference. "As you know, it was in the process of construction and that was shut down many, many months ago by the lenders, and we'll see what happens with Norwood at some point in the future."