NORWOOD, Mass. — A federal lawsuit seeking tens of millions of dollars in damages has been filed by Steward Health Care over the closure Norwood Hospital, which has been shut down since heavy rain flooded the hospital on June 28, 2020.
Steward accuses its insurers, including Zurich American Insurance Company, of intentionally causing delays in the hospital’s efforts to recover.
The loss of the 215 bed facility has been of great concern to Norwood and surrounding communities due to potential delays in getting emergency care and other services.
In its lawsuit, Steward says the insurers’ “refusal to effectuate a prompt and reasonable resolution of the claims has needlessly protracted the closure of the Hospital, which has had unquantifiable effects on the Norwood community and surrounding areas resulting in, without limitation: much longer trips for local residents to receive medical services; Emergency Medical Services needing to now bypass the Hospital and transport patients much longer distances; a severely disrupted physician network that will continue to deteriorate over time as physicians and other staff depart for employment opportunities elsewhere; furloughed and relocated employees (of which there are almost 1,000) no longer buying goods and services in the local communities...”
Steward Health has said it intends to rebuild Norwood hospital.
The ‘weather event’ described in the lawsuit says approximately 5.75 inches of rain fell in 90 minutes, causing “causing catastrophic flood water to penetrate the basement and ground levels of the Hospital.. Essential patient care systems including the nurse-call communication system and medical gas and vacuum systems were critically damaged, as was diagnostic imaging equipment and other major patient diagnostic and treatment equipment which cannot be placed back into safe and consistently reliable service. In short, every single floor of the Hospital was damaged in some way.”
Steward and its landlord, Medical Properties Trust, say the damage is so severe the best approach is “to remove the existing buildings and develop a new complex in its place.”
“The Defendants have in turn refused to meaningfully work with Steward, MPT, and their licensed professionals, in complete disregard for these mandates and the weight of the Loss. Instead, the Defendants’ approach to handling the claims has been to both contradict themselves and to “deny first and ask questions later,” according to the suit.
“The Defendants’ actions are particularly egregious as they have unnecessarily prolonged the closure of the Hospital, a vital health care facility and community contributor, during a pandemic.”
Boston 25 News has reached out to Zurich American Insurance Company for comment. A spokeswoman said it is not the company’s practice to comment on matters in litigation.
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