Ethan Rhodes
The for-profit health care system Steward Health Care, which was created in 2010, has been facing financial difficulties that have led to the closure of some of its hospitals in Massachusetts. Despite the financial troubles, Steward Health Care still operates several hospitals in the state, with sources citing different numbers of hospitals still in operation, ranging from five to nine. The Massachusetts government has taken steps to save the remaining Steward hospitals and ensure continued access to healthcare services for communities across the state.
| Characteristics | Values |
|---|---|
| Number of Steward Hospitals in Massachusetts | 8-9 |
| Owner | Steward Health Care |
| Status | Filed for Chapter 11 bankruptcy protection |
| Location of Hospitals | Most are in the eastern part of Massachusetts |
| Hospitals Closed | New England Sinai Hospital in Stoughton, Carney Hospital, Nashoba Valley Medical Center |
| Hospitals to Transition to New Operators | Saint Anne's Hospital, Good Samaritan Medical Center, Holy Family Hospitals, Morton Hospital, Saint Elizabeth's Medical Center |
| New Operators | Boston Medical Center, Brown University Health, Lawrence General Hospital |
| Financial Performance | Clouded by the system's refusal to provide data to the state |
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What You'll Learn
- Steward Health Care filed for bankruptcy protection in May 2024
- The company owns eight hospitals in Massachusetts
- The state helped five Steward hospitals remain open
- The financial collapse of Steward Health Care could be an opportunity to improve the state's healthcare system
- Steward's refusal to share financial data has clouded its true performance
Steward Health Care filed for bankruptcy protection in May 2024
On Monday, May 6, 2024, Steward Health Care, a for-profit health care system, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The hospital operator, which owns eight hospitals in Massachusetts, including St. Elizabeth's Hospital and Carney Hospital in Boston, has faced financial difficulties in recent years due to several factors. Steward's financial troubles have resulted in a lack of adequate staffing and supplies in some of its facilities, endangering patients and causing frustration in the communities they serve.
One of the main reasons for Steward's financial woes is the burdensome lease payments it owes to Medical Properties Trust (MPT), a real estate firm that purchased Steward's Massachusetts properties for $1.25 billion in 2016. Instead of investing the proceeds back into its hospitals, Steward used the money to expand outside Massachusetts, taking on additional financial commitments. The COVID-19 pandemic further exacerbated Steward's financial situation, as surgeries, a significant source of income for the hospital chain, plummeted during this time.
In addition, Steward's former private equity owners, Cerberus Capital Management, have been criticized for their role in the company's financial decline. U.S. Senator Elizabeth Warren of Massachusetts denounced Cerberus Capital Management for forcing Steward to pay rent at its hospitals, referring to the situation as "Wall Street private equity vultures looting our healthcare system."
Despite filing for bankruptcy protection, Steward has pledged to maintain its hospitals in Massachusetts and continue providing care to its patients. Company officials and state leaders, including Massachusetts Governor Maura Healey, have assured that none of the hospitals will be closed during the bankruptcy proceedings. Steward is currently finalizing a debtor-in-possession financing agreement with MPT, which could provide the company with additional funds to navigate its financial distress.
The bankruptcy filing has also prompted calls for increased oversight of Steward and a push for the state to play a more active role in ensuring the stability of its healthcare system. Health policy experts and state officials alike recognize the need to prioritize advancing public health over profits and safeguarding patient care.
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The company owns eight hospitals in Massachusetts
Steward Health Care, a for-profit health care system, owns eight hospitals in Massachusetts. The company was created in 2010 when Cerberus Capital Management, a private equity firm, bought the Caritas Christi hospital chain from the Archdiocese of Boston. Despite its financial troubles, Steward remains the owner of eight hospitals in the state, most of which are located in the eastern region.
In recent years, Steward Health Care has encountered significant financial difficulties, including a lack of adequate staffing and supplies in some of its facilities. The company's financial woes have been attributed to burdensome lease payments to Medical Properties Trust (MPT), the real estate firm that purchased Steward's Massachusetts properties in 2016 for $1.25 billion. Despite leasing the properties back to Steward, the company has struggled to keep its hospitals running.
The state government, led by Governor Maura Healey, has taken steps to save the remaining Steward hospitals and protect access to healthcare for the communities they serve. Deals have been reached to transition the operations of four hospitals to new operators, while the administration will take control of Saint Elizabeth's through eminent domain to facilitate its transition to a new owner.
The bankruptcy proceedings have caused concern among patients and communities, with some hospitals closing and others facing an uncertain future. However, state leaders have assured that none of the hospitals will be shut down due to the bankruptcy process, and patients have been advised to continue seeking care at Steward hospitals. As the situation unfolds, the fate of Steward's eight hospitals in Massachusetts remains in question, with the state working to stabilize and strengthen these critical healthcare facilities.
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The state helped five Steward hospitals remain open
Steward Health Care, a for-profit health care system, has been facing financial difficulties for several years. The company's financial troubles have resulted in a lack of adequate staffing and supplies in some of its facilities, endangering patients and causing frustration and anger in the communities they serve.
In August 2024, Governor Maura Healey announced that deals had been reached to transition operations at four Steward hospitals in Massachusetts to new operators: Saint Anne's Hospital, Good Samaritan Medical Center, the Holy Family Hospitals, and Morton Hospital. The administration also took control of Saint Elizabeth's Medical Center through eminent domain to facilitate its transition to a new owner.
These actions were taken to save and keep operating the five remaining Steward hospitals in the state, protecting access to care for the communities they serve and preserving the jobs of the healthcare workers employed at these hospitals.
The state of Massachusetts played an active role in ensuring the continuity of care for patients and supporting the workforce during this transition. Governor Healey urged patients to keep their appointments at Steward Health Care facilities, assuring them that the hospitals would remain open and that they should continue to seek care as needed. The state also activated an "emergency operations plan" to ensure patients had continued access to the hospital system during the transition.
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The financial collapse of Steward Health Care could be an opportunity to improve the state's healthcare system
The financial collapse of Steward Health Care, which owns eight to nine hospitals in Massachusetts, has brought to light the need for improved state healthcare systems. The collapse has been attributed to Steward's refusal to provide financial transparency, financial mismanagement, and burdensome lease payments, endangering patient care and safety.
Steward Health Care was created in 2010 when Cerberus Capital Management, a private equity firm, purchased the Caritas Christi hospital chain from the Archdiocese of Boston. Over the years, Steward encountered financial difficulties, culminating in its recent bankruptcy declaration. This crisis has disrupted healthcare services and placed a strain on other hospitals in the state.
However, health policy expert John McDonough suggests that this collapse presents an opportunity to create a stronger, more patient-centered, and community-centered healthcare system in Massachusetts. He emphasizes the need for increased oversight of Steward and recommends transitioning to a non-profit community hospital model to prioritize public health over profits.
The state has taken proactive steps to address the situation, with Governor Healey's administration working to avert a public health crisis and ensure high-quality healthcare for communities. Additionally, working groups have been formed to address the needs and concerns of affected communities, demonstrating a commitment to finding solutions that benefit residents.
As negotiations with bidders for Steward's hospitals continue, there is a chance to restructure the healthcare system and improve patient care. By learning from the mistakes of Steward Health Care, Massachusetts has an opportunity to emerge from this crisis with a more robust and equitable healthcare framework.
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Steward's refusal to share financial data has clouded its true performance
Steward Health Care, a for-profit health care system, has been facing financial difficulties for years. The system, which was created in 2010 when Cerberus Capital Management bought the Caritas Christi hospital chain, has been plagued by financial troubles and has recently filed for Chapter 11 bankruptcy protection. While the exact number of Steward hospitals in Massachusetts is unclear, with different sources citing eight or nine hospitals, it is known that the system has been selling off its properties and that several of its hospitals have closed.
The true extent of Steward's financial woes has been difficult to ascertain due to their refusal to share financial data with the state. This lack of transparency has clouded their true performance and made it challenging for stakeholders to understand the severity of their financial situation. Despite this, there have been reports of inadequate staffing and supplies in some of its facilities, endangering patients and leading to media reports of its potential financial collapse.
The refusal to provide financial data to the state is not the only controversy surrounding Steward. In 2022, Steward Health Care System LLC and its related corporate entities agreed to pay approximately $4.735 million to resolve allegations of False Claims Act violations. The settlement agreement revealed that Steward had violated federal law through improper financial and referral arrangements with physicians and physician practice groups. These arrangements included leasing properties to physicians and physician organizations that referred patients to Steward's Massachusetts hospitals.
The financial troubles of Steward Health Care have had a significant impact on the communities they serve. The closure of hospitals, such as Carney Hospital and Nashoba Valley, has left patients saddened, frustrated, and angry. These hospitals were integral to their communities, and their absence will burden nearby emergency departments and impact the timely transport of patients by EMS providers.
The state of Massachusetts has taken steps to address the situation. Boston Medical Center Health System, for example, has reached an agreement to purchase two Steward hospitals, and the state has provided financial support for these transactions. While these deals ensure the continuation of healthcare services in the communities, they do not address the underlying issues surrounding Steward's financial performance and its refusal to share data with the state. As a result, the true performance and stability of Steward Health Care remain unclear, and the system's future is uncertain.
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Frequently asked questions
As of 2024, there are eight Steward hospitals in Massachusetts.
The contact numbers for the Steward hospitals in Massachusetts vary depending on the specific hospital. Here are the main phone numbers for some of the hospitals:
- Holy Family Hospital - Methuen Campus: 978-687-0151
- Holy Family Hospital - Haverhill Campus: 978-374-2000
- Morton Hospital: 508-828-7000
- New England Sinai Hospital: 781-344-0600
- Norwood Hospital: 781-769-4000
- Saint Anne's Hospital: 508-674-5600
- St. Elizabeth's Medical Center: 617-789-3000
Steward Health Care, the company that owns the Steward hospitals in Massachusetts, filed for Chapter 11 bankruptcy protection in May 2024. Despite the bankruptcy proceedings, it has been assured that none of the hospitals will be shut down.
Governor Maura Healey and her administration have taken steps to save and keep operating the remaining Steward hospitals. Deals have been reached to transition operations at some hospitals to new operators, while the state government has also provided financial support to ensure the hospitals can continue serving their communities.
