Lawmakers press Steward for info after reports of financial distress

Massachusetts' congressional lawmakers are requesting information from Steward Health Care after local reports about looming hospital closures within the system, which operates nine hospitals in the state.

Massachusetts' two U.S. senators and all nine of its U.S. House representatives are asking Dallas-based Steward to brief them on its financial position, the status of its Massachusetts facilities, and its plans to ensure the communities they serve are not abandoned. 

"The abrupt closure of Steward's Massachusetts hospitals would significantly limit access to inpatient critical care and inpatient behavioral health care, as well as maternal and newborn health services in eastern Massachusetts," said the lawmakers. "The burden of Steward hospital closures would be borne primarily by the Massachusetts residents who already experience the greatest challenges accessing healthcare."

The lawmakers cited reporting by The Boston Globe as a catalyst for its concern. On Jan. 19, the outlet reported that Steward "is in such grave financial distress that it may be unable to continue operating some facilities, according to public records and people with knowledge of the situation." The report described the financial decline as a "fast-moving crisis" with regulators racing against the clock to prevent closures and mass layoffs. 

"This is an indication of how important our community hospitals are to the state," a spokesperson at Steward told Becker's about the lawmakers' request for information. "Given that 70 percent of our patients are covered by state and federally funded programs, we look forward to briefing the delegation and exploring potential solutions."

Steward owns and operates 33 community hospitals across nine states; nine of those hospitals and 16,000 employees are in Massachusetts. It was reported earlier this month that the health system is approximately $50 million behind on its rent at year-end to Medical Properties Trust, the largest hospital landlord in the U.S.

 

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