Massachusetts Attorney General Maura Healey is closely following the developments at Steward Health Care, a for-profit chain overseeing nine hospitals in the state. Healey’s main focus is on maintaining stability in the healthcare system, prioritizing patient protection and ensuring access to healthcare.
During a recent press event in Newton, Healey emphasized the administration’s commitment to safeguarding patients and the overall stability of the healthcare system. She mentioned ongoing communication with Secretary Kate Walsh’s team, emphasizing the evolving nature of the situation.
The Massachusetts Congressional delegation recently addressed a letter to Steward’s CEO, Ralph de la Torre, underscoring the potential impact on patients if any of Steward’s hospitals were to close. Steward, responsible for operating various hospitals in the state, is reportedly facing financial distress and planning the closure of New England Sinai Hospital. Federal charges related to the False Claims Act have also been brought against Steward.
Concerns about strained hospital systems in Massachusetts have arisen due to factors such as patient demand, workforce constraints, and funding challenges. The delegation’s letter referenced reports of financial distress, unmet rent and loan payments, and federal charges against Steward.
Medical Properties Trust (MPT), a real estate investment trust, highlighted delayed and partial rent payments from Steward, suggesting negative impacts on Steward’s liquidity. MPT is collaborating with Steward on an action plan to strengthen liquidity, restore the balance sheet, and reduce exposure to Steward.
The delegation has requested a financial briefing from Steward, and questions surround the potential roles of major hospital groups like Mass General Brigham and Beth Israel Lahey Health. Healey mentioned that they are closely monitoring the situation, awaiting a plan from Steward before commenting on potential interventions.
Amidst strained hospital systems in Massachusetts, Secretary Walsh outlined an agreement among healthcare stakeholders to voluntarily and temporarily adapt operations to address patient capacity challenges. Steward is reportedly exploring strategic transactions, including the potential sale or re-tenanting of certain hospital operations.
The situation underscores the delicate balance between healthcare stability, financial considerations, and patient welfare in the evolving landscape of healthcare management in Massachusetts.
