Talks between Somerville, Mass.-based Mass General Brigham and Medical Properties Trust over the unfinished Norwood (Mass.) Hospital construction site fell through after the hospital real estate owner came back with a second asking price 50% higher than its first, The Boston Globe reported June 15.
Norwood Hospital has been closed since June 2020 after it was evacuated due to flooding. The hospital and four satellite facilities were abandoned by bankrupt Dallas-based Steward Health Care, whose landlord was MPT, in October 2024 after the health system paused reconstruction efforts in February 2024 over contractor claims that they had not been paid.
Massachusetts state Democrat Rep. John Rogers told the publication that MGB held discussions with MPT over the site in late 2025, which continued into early this year about purchasing the 11-acre site. MPT initially sought $250 million for the property, then came back with a $375 million price tag when MGB said the price was too high.
“Coming back with a second asking price that’s 50% higher when you know the price should be much lower” was egregious, Mr. Rogers told the publication.
While both parties were still technically in discussions in early 2026, the negotiations went nowhere.
Norwood’s town general manager, Tony Mazzucco, told the Globe he knew of discussions, and said MGB indicated it was prepared to pay “a significantly appropriate” sum. Mr. Mazzucco said whoever purchases the site would need to spend an additional $100 million to $150 million to finish construction.
“It’s a worthless piece of property unless a hospital buys it,” Mr. Mazzucco said.
Mr. Rogers filed emergency legislation in January to authorize the state to seize Norwood Hospital property through eminent domain if negotiations to reopen it proved unsuccessful. The bill is under consideration by the state’s House Ways and Means Committee, the publication said.
“MPT is engaged in discussions with a range of parties and committed to finding a viable solution to facilitate the reopening of Norwood Hospital,” a spokesperson for MPT said in a June 15 statement shared with Becker’s. “Following the devastation flooding conditions that forced closure of the facility in 2020, we brought in Suffolk Construction to lead restoration efforts and were the only party that stepped in to fund construction costs. To date, we have invested more than $300 million into rebuilding this facility, excluding any insurance proceeds that we received. MPT has an obligation to our shareholders to ensure that we transfer ownership of this property at fair market value, and we have not yet received an offer even close to resembling that.”
Mass General Brigham had no comment for Becker’s.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.