$1.25b Steward deal is touted as ‘positive news’ for Carney

Carney Hospital will benefit from a major infusion of capital set to flow into the Steward Health Care System, which on Tuesday announced the terms of a new equity partnership with publicly traded behemoth Medical Properties Trust, Inc. (MPT).

The deal, which will enable Steward to embark on a national expansion effort, will pump $100 million into the Boston-based company in the near term.

While no immediate plans specific to Carney have yet been disclosed, sources close to the deal say it helps to assure the Carney community and its patient base that Steward is committed to the Dorchester hospital for years to come.

“This is a validation of the affordable, quality-care model that we have implemented in Dorchester for the benefit of thousands of Carney patients,” said Walter Ramos, the president of Carney, in a statement to the Reporter. “This investment is another key step in building a bright future for Carney Hospital, its patients, its workers, and other Steward Family hospital employees.”

The arrangement with MPT will involve a real estate leaseback transaction in which MTP will take ownership of Steward’s various property holdings— including the Carney campus— for a value of $1.25 billion. Steward will then pay MPT regular sums over the next 30 years to lease and manage the properties and leverage the additional capital to make new acquisitions.

In a statement to the press this week, Steward maintained that the deal “unlocks the value of Steward’s real estate assets, pays off corporate debt, strengthens the company financially, broadens its ownership base, and will provide fresh capital to fund expansion into regions of the country comfortable with the integrated Accountable Care Organization (ACO) model honed by Steward.”

“We believe this investment is a strong validation of our business model and an endorsement of our ability to scale nationally,” said Ralph de la Torre, founder, chairman, and CEO of Steward Health Care System.

John Polanowicz, the executive vice president of Steward’s Hospital Services Group, added that the deal sends a re-assuring message to Dorchester and surrounding communities that rely on the Carney. “This investment is important and positive news for Carney Hospital and represents another key step in protecting and strengthening Carney as a vital community resource. It validates the hard work and investments that have been made thus far to help Carney thrive.”

“Steward will remain a Boston-based company committed to investing in community hospitals for the benefit of patients and workers,” added Polanowicz, “and Boston-based management will assume a larger equity stake in the company. By gaining a new, publicly traded partner in Medical Properties Trust, we have secured additional resources to invest in Carney Hospital’s infrastructure, building on the many millions of dollars that Steward has invested in the hospital since 2010.”

Other hospitals currently in the Steward system include Norwood Hospital, Saint Anne’s Hospital in Fall River, St. Elizabeth’s Medical Center in Brighton, Good Samaritan Medical Center in Brockton, Nashoba Valley Medical Center in Ayer, Holy Family Hospital in Haverhill and Methuen, Morton Hospital in Taunton, and New England Sinai Hospital in Stoughton.


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