No immediate care issues found in bidless Steward hospitals: Report

Three of Dallas-based Steward Health Care's hospitals that failed to receive bids were part of a recent bankruptcy court inspection filing that found some room for patient care improvement. However, the filing also found no material issues impacting patient care that would require immediate bankruptcy court attention. 

A July 23 bankruptcy court filing, obtained by Becker's, revealed that patient care ombudsman Suzanne Koenig conducted the inspection from May 22 to July 22 for Steward hospitals in Massachusetts, Ohio, Pennsylvania and the Miami area.

Steward, which filed for bankruptcy May 6, has been working to offload 31 hospitals and physician group Stewardship Health. 

Most recently, the for-profit health system shared that it had "not received bids that constitute a qualified bid" for Hillside Rehabilitation Hospital in Howland, Ohio, Trumbull Regional Medical Center in Warren, Ohio, and Sharon (Penn.) Regional Medical Center. 

However, Steward also shared that it had declared bids from Hope, Ark.-based Pafford Health Systems to purchase Wadley Regional Medical Center in Hope and AHS South to purchase Regional Medical Center in West Monroe, La.

"Today’s report confirms what we believe should reassure all our communities – that Steward hospitals are safe, that our patients are continuing to receive the high-quality, compassionate care they deserve, that our emergency departments remain open and accepting patients, and that when issues do arise, our hospital leadership is engaged and actively works to address them in a timely manner," a spokesperson for Steward said in a statement shared with Becker's. "This is a testament to the commitment of our dedicated staff who work tirelessly – even under challenging and uncertain circumstances – to provide consistent and excellent care."

Here are seven findings from Ms. Koenig's report:

1. While staffing at some of Steward's hospitals has been challenging, the report said Ms. Koenig did not find any issues that made her feel that patients were in "immediate danger or otherwise receiving unsafe care due to staffing issues." The report said that Steward is actively recruiting and filling shifts that are vacant through bonuses, in-house travelers and overtime. The health system's staffing levels seem to be sufficient, according to the report, with staff generally showing a strong commitment to care. 

2. Ms. Koenig found Steward's leadership team is spread thin, but dedicated to ensuring strong patient outcomes, care. It is also dedicated to making improvements and providing oversight across the health system's hospitals. 

3. The report found no concerns regarding the procurement of supplies like medical supplies and food. To prevent shortages, the hospitals Ms. Koenig inspected are sharing supplies as needed. Supply rooms seem to have enough supplies to ensure patient care is provided at the hospitals. 

4. Ms. Koeing found that the hospitals  are in need of repairs, along with new or repaired equipment. Some of the non-functioning equipment includes elevators, endoscopy scopes, hospital chillers and kitchen equipment. Adequate temporary solutions have been put into place, like rental equipment, while Steward leadership works on more permanent equipment solutions. "Often, the debtors’ [Steward] staff must wait on the provision of funds to fix or replace the broken equipment, as many vendors are demanding prepayment, cash on delivery, or are unwilling to provide the services," the report said. "However, [Ms. Koenig] has observed improvement since her appointment. Specifically, several non-functioning elevators at St. Elizabeth have been brought back into full working order." 

5. Ms. Koenig found that many of the hospital kitchens that required initial attention due to lack of organization, clutter and dirt have implemented corrective action plans to significantly improve the issues. Corrective plans have also been implemented for many hospital kitchens which initially had chaotic work processes. 

6. The report indicated that some of the hospital's equipment and infrastructure showed aging, such as chipped paint and old, worn-out furniture. However, Ms. Koenig did not find significant intrusion or signs of water damage at the hospitals. 

7.  "The patient census at many of the hospitals has declined and appears to be partly related to negative press concerning the debtors’ hospitals and these bankruptcy cases," the report said. "[Ms. Koenig] observed staff committed to providing excellent care to the patients and urges all parties in interest and the communities to continue supporting these Hospitals, many of which are critical to their localities."

Editor's note: This story was updated as of July 24 at 8:08 a.m. CT.

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