There’s a hitch in Norwood Hospital's story. Steward Health Care, after selling six functional hospitals, left Norwood, a suburb closed since 2020, in a tricky spot. Now, it needs a reliable, local, nonprofit hospital operator to take the reins and someone with funds to make that happen. While the future is uncertain, this could be a chance for Massachusetts to rethink healthcare needs. A lot needs to be sorted out, like settling lawsuits, raising money, finishing construction, and reopening.

Construction was ongoing until this year. After a 2020 flood, Steward and Medical Properties Trust (MPT) decided the hospital should be rebuilt. Work started in November 2021 at a cost of $325. 7 million, though costs rose later. Steward stopped paying bills, entered bankruptcy, and handed the project to MPT, which has spent $196 million so far.

Norwood Hospital's operating license expires on November 5. MPT is eager to complete the work but hit a snag when the Department of Public Health refused to extend the license to let MPT proceed. The lease expired in August, and MPT challenged this decision in court. It’s possible the state isn't thrilled with MPT’s actions, which have included questionable financial moves profiting executives while bankrupting hospitals.

A major concern is finding a new healthcare facility for Norwood. Residents want an acute care hospital, similar to the old one. However, it's crucial to think about what services are actually needed now after years of being closed. Perhaps a different setup, like an outpatient surgical facility, might be better.

The challenge is who will finish the building and run it. A new hospital could be profitable, as Norwood was before closing. But completing construction would cost a lot at a tough financial time for hospitals. Mass General Brigham isn’t interested, and UMass Memorial Health Care isn’t involved in the legislation.

MPT should work with the Department of Public Health to resolve the license lawsuit and sort out flood damage compensation. They might need to offer concessions to attract good operators and investors. Avoiding pitfalls from private equity is key. Six Steward hospitals have moved to local, nonprofit operators, so Norwood could follow this path.

NORWOOD HOSPITAL

Finding a Supportive Hand for Norwood Hospital

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