For Immediate Release - May 26, 2011

Attorney General's Office Received Formal Notice of Proposed Morton Hospital-Steward Transaction

AG's Office will hold public hearing and accept comments from the public

BOSTON - Today, Morton Hospital and Medical Center, located in Taunton, filed its formal notice of the proposed transfer of the hospital to Steward Health Care System LLC. Massachusetts state law provides for a review by the Attorney General's Office of any transfer of a non-profit acute care hospital to a for-profit entity. Following that review, the Morton will file a petition with the Supreme Judicial Court (SJC) seeking authority to transfer its assets to the for-profit buyer pursuant to the terms of the transaction. Today's filing of the notice of the proposed transaction marks the commencement of the Attorney General's review process. The filing is available on the Attorney General's website ( www.mass.gov/ago/morton).

In conducting its review, the law requires that the Attorney General's Office consider the following factors:

  1. Applicable non-profit and charities law;
  2. Procedural due care;
  3. Management of conflict of interests;
  4. Fair and reasonable compensation; and
  5. The public interest.

The Attorney General's Office is committed to conducting its review in a manner that is transparent and that incorporates feedback from community stakeholders and the public at large. The office, in collaboration with the Department of Public Health, which must conduct a separate review of the transaction, will hold a public hearing at 6:00PM on June 30, 2011, at the Benjamin A. Friedman Middle School, located at 500 Norton Ave in Taunton.

In addition to the public hearing, the Attorney General's Office will also accept written comments during the review process. The Attorney General's Office will accept comments up until time it issues its decision. Individuals or groups who wish to submit comments may do so by mail or email:

Mail: Attorney General's Office

Non-Profit Organizations/Public Charities Division

Attn: Morton Hospital Transaction Review

One Ashburton Place

Boston, MA 02108

Email: hospitaltransactions@state.ma.us

The Attorney General's Office anticipates that, the review process will take a number of months. Once the Office has completed its review, written findings will be prepared and issued.

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