More than 1,000 workers will be laid off when Steward Health Care closes its two Massachusetts hospitals at the end of the month, the bankrupt Dallas company told the state.
When Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer close on or about Aug. 31, about 1,243 employees at the two health centers will be out of a job, according to the Steward announcement. gave it to the government on Friday.
About 753 Carney workers are expected to lose their jobs, while 490 in Nashoba Valley will also be affected, according to a notice mandated by the federal Worker Adjustment and Retraining Act.
In anticipation of the closing, after a federal bankruptcy judge in Texas ruled last week to allow debt-ridden Steward to continue, current and former patients are being notified to provide proof of claim.
The deadline to submit proof of claims against the debtor is Aug. 23 at 6pm
“Just because you receive this notice does not mean you have a claim or need to file a proof of claim,” the bank’s court document says. “You are not required to provide proof of claim for any reimbursement arising in the course of business that the debtor has been authorized to pay by court order.”
“Creditors and their advisers cannot give you legal advice,” it added. “To the extent you seek legal or other professional advice, please consult your own attorney or advisor.”
Bankruptcy Judge Christopher Lopez said federal bankruptcy laws left him no choice but to allow the hospitals to close.
“Closing one hospital is a reality – it affects the lives of people who are there now,” he said. “The importance of everyone weighs on me, when I am told that there may be life decisions … but from a legal point of view, the debtors have the power to close.”
Inside the Ayer City Hall last Tuesday, officials appealed to Gov. Maura Healey asked Steward to follow a state law that forces health care organizations that plan to close services to notify the Department of Public Health at least 120 days in advance.
Healey had told reporters earlier last week that there was nothing he could do to stop Steward from closing Nashoba Valley, Carney, or any other facility. But, on Thursday, the governor said he was pressing Steward to comply with the Department of Public Health’s order.
“I made it clear to Steward, they need to stay open for 120 days. We need to have a smooth transition. Steward made the call to close those two hospitals,” Healey told reporters. “We have worked hard to find an agreement that will ensure a smooth transition of ownership from Steward to Responsible Person.”
Nashoba Valley and Carney did not receive qualifying bids during the July 15 auction, while Steward’s five other hospitals did.
Those facilities include Good Samaritan Medical Center in Brockton, Holy Family Hospitals in Haverhill and Methuen, Morton Hospital in Taunton, Saint Anne’s Hospital in Fall River, and St. Elizabeth in Brighton.
Boston Mayor Michelle Wu wrote a letter to the owners of Dorchester’s Carney Hospital on Thursday, demanding that the property be used exclusively for healthcare purposes in the future. If not, homeowners could face a refund from Wu’s office, the mayor warned.
“Our community is rightly concerned that your companies, not satisfied with the hundreds of millions of dollars already taken out of Steward Hospitals, hope to profit from the closure of Carney Hospital by upgrading goods,” Wu wrote. “I would like to make it clear that my Administration will oppose any attempt by the owners to rezone the property for uses other than the provision of health care. “
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