Rogers and Rush file eminent domain legislation for hospital

State Rep. John Rogers and State Sen. Mike Rush filed legislation on Monday, Jan. 12 that would direct the Massachusetts Division of Capital Asset Management and Maintenance to obtain the Norwood Hospital property by eminent domain.

The bill – https://malegislature.gov/Bills/194/HD5528 – would essentially allow the state to take the property – barring any laws to the contrary – from Medical Properties Trust (MPT). Massachusetts laws around eminent domain do not mean, however, that the state can just grab property for free. According to the Massachusetts Constitution – https://tinyurl.com/23rft7wy – the state must provide “reasonable compensation” for such property.

What “reasonable” means is highly negotiable, however, as St. Elizabeth’s Hospital was taken from Apollo asset management for $66 million – and that was a working hospital. Norwood Hospital is mostly completed now, with the building shell done and the garage almost there, but the first floor will need to be outfitted by the incoming operator. This is, apparently, standard practice, as different operators will need to layout their rooms, utilities, medical supply lines and more in the way that works best for them.

That will add about 18 months to the completion time, and that’s after an operator has been found.

But how will that affect the price? The building itself cost $350 million, according to MPT, and that’s for a building that won’t start generating income for 18 months. St. Elizabeth’s was a working hospital that did not wholly shut down during the Steward sale process.

Rush and Rogers put out a joint statement shortly thereafter on Monday iterating that they want the regular purchase process to continue:

“We fully support the ongoing negotiations occurring between Medical Properties Trust and prospective hospital operators to facilitate the sale of the Norwood property, complete construction, and open a new hospital,” the two wrote. “We continue to encourage all parties to work toward a timely and favorable agreement.”

Rush and Rogers also said they have the support of Congressman Stephen Lynch, who has been extremely vocal, at least at Norwood Town Meeting the last few sessions, about the need for Norwood Hospital, in Norwood and the region.

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“We also continue to work closely with our friend and strong federal partner, Congressman Stephen Lynch who supports and welcomes continued discussion of eminent domain takings as a potential option to ensure the long-term viability of hospital services in the region,” Rush and Rogers wrote. “In the event that these negotiations do not result in a favorable outcome, today, we are filing a House bill to authorize and direct the Commonwealth to acquire the Norwood property through eminent domain in order to secure a qualified hospital operator. This action will be taken to protect the safety, health, and welfare of the people and the surrounding region, who all vitally rely on access to local hospital care within this major region.”

Rogers said in an interview with The Boston Globe on Monday that the idea is to encourage the private sale between MPT and any organization it may be in communication with, though the word “fire sale” was quoted. Norwood Town Manager Tony Mazzucco said there have been negotiations ongoing between MPT and an unnamed operator, at least so far as his communication with MPT indicates, but nothing public has been released at the time of publication.

MPT did not respond to a request for comment.