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Allison Kuznitz| SHNS
The
Senate passed a redrafted bill Wednesday enabling the state to take by
eminent domain the property occupied by the under-construction Norwood
Hospital, with the caveat that the land taking is subject to legislative
appropriation.
The House passed similar but narrower legislation
(H 5553) on July 1 in an effort to salvage and reopen Norwood Hospital,
the last remnant of the Steward Health Care bankruptcy saga. The
hospital shuttered in June 2020 due to catastrophic flooding, and
construction of a new building was stalled as Steward stopped paying a
contract and went bankrupt. The property is owned by Steward's landlord,
the Alabama-based real estate investment trust Medical Properties
Trust.
The Senate adopted an amendment from Sen. Michael Rush,
whose district includes Norwood Hospital, with a redrafted bill (S
3231) that adds new sections about how the eminent domain process should
be handled.
"Today, the Senate delivered a decisive win for Norwood
and every surrounding community that has been forced to go without a
hospital they can count on," Rush said in a statement. "For too long,
our region has paid the price while Steward abandoned this hospital,
drove the company into bankruptcy, and walked away, leaving a half-built
shell and families with nowhere close to turn in an emergency."
Under the Senate bill, the Division of Capital Asset
Management and Maintenance commissioner would conduct a competitive
bidding process for the property, requiring that proposals contemplate
usage for healthcare purposes and only allowing bids from nonprofit
buyers. DCAMM could delay any action tied to the competitive bidding
process or land taking "if a sale, lease or agreement between MPT of
Norwood-Steward, LLC and a health care operator appears likely to result
in near-term execution," the bill says.
An MPT fact sheet circulated this week said the firm
has invested more than $350 million into rebuilding Norwood Hospital and
"under the right set of circumstances, will consider funding even
more—as much as the $150 million estimated to complete clinical
construction."
"The fastest and least costly way to reopen Norwood
Hospital is to let MPT finish construction of the facility and find a
qualified operator," the fact sheet said. "The Commonwealth of
Massachusetts should work collaboratively with MPT to ensure the chosen
operator receives the determination of need (DoN) necessary to sustain
operations at Norwood."
Through the Senate bill, DCAMM would value the hospital
property using "customarily accepted appraisal methodologies," which
Inspector General Jeffrey Shapiro would then review and approve. Shapiro
would also be required to file a report about his review with DCAMM and
the Legislature.
Like the House, the Senate bill authorizes DCAMM to
take the Norwood property "for the purpose of ensuring access to health
care for the public." But the Senate bill clarifies the land taking is
subject to sufficient appropriation from the Legislature, as well
acceptance of bids, proposals or other offers from a qualified nonprofit
organization.
After flexing its eminent domain power, DCAMM would
transfer care and control of the property to the Executive Office of
Health and Human Services.
The Senate bill also outlines a contingency plan if a
nonprofit entity does not complete a purchase of the property by Jan.
15, 2033. DCAMM could sell the property, lease it for up to 99 years or
convey an interest in the property. The town of Norwood would have the
right of first refusal to purchase, lease or acquire interest in the
land parcels.
Negotiations for Mass General Brigham to buy the
11-acre property "fizzled" after MPT first requested $250 million and
then ratcheted up its ask to $375 million, The Boston Globe reported
last month.
Tony Mazzucco, Norwood's general manager, estimates the property is worth "maybe $75 million as a hospital."
"As just commercial land in Norwood, it's not worth all that much," Mazzucco told the News Service earlier this month.
Rush accused MPT of stonewalling the sale of the property.
"With this bill, the Commonwealth is stepping up to
finish the job, and I will not let up until a trustworthy nonprofit
operator has this hospital open, staffed, and serving the families who
have waited far too long," Rush said.
In a radio interview Wednesday, Gov. Maura Healey said she is "happy to support" Norwood Hospital legislation.
"I sure hope we can get something back there because,
you know, the people of that area, you know, lack that that hospital
presence right now," Healey said.
MPT says it has built as the hospital "as much as possible" without having a new operator lined up.
"MPT has enabled the building to be completed so it is
'weather tight' and all major building equipment is installed, protected
and ready for the buildout of a hospital’s interior," the fact sheet
said. "However, the clinical construction for the hospital’s interior
cannot be finished until a new operator is identified and they outline
how they wish that space to be configured. MPT is prepared, subject to
the proper conditions, to finance that construction."
The House must now consider the Senate's expanded
approach. It's unclear whether the differing approaches will require
conference committee assignments by Friday.
Alison Kuznitz is a reporter for State House News Service and State Affairs Pro Massachusetts.
