State Forces Delay in Sale of Norwood and Southwood Hospitals-September 5, 1997

State regulators have forced a delay in the proposed $58 million acquisition of Neponset Valley Health System—which operates Norwood and Southwood hospitals—by for-profit giant Columbia/HCA Healthcare Corp., making it unlikely the deal will close by the targeted September 30 deadline.

Richard Allen, head of the Attorney General’s Division of Public Charities, stated that his office requires additional time to review newly submitted materials to ensure the purchase price is fair and to protect the public interest. While hospital spokeswoman Diana Franchitto downplayed immediate financial penalties, she warned that a prolonged delay past December 1 could jeopardize $4.4 million in back Medicare payments from the federal government. These funds are vital, as they comprise more than half of an estimated $8 million earmarked for a new community foundation to support local public health benefits.

Public Hearing Draws Criticism Over Notice

In addition to review by Attorney General Scott Harshbarger, the transaction requires approval from the state Department of Public Health (DPH) to transfer hospital licenses. The DPH held a newly mandated public hearing in Wrentham regarding the sale, but members of the Neponset Valley Health Coalition—including Norwood resident Kathy Ward—expressed dismay over sparse public notice. DPH deputy director Paul Dreyer defended the outreach, noting that notices were published in regional papers and coordinated with the coalition. Meanwhile, state officials continue their comprehensive review of the corporate takeover.

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger