Financial Troubles at Steward Health Care Raise Concerns for Hospitals Nationwide

The future of Steward Health Care’s Massachusetts hospitals is in jeopardy, and health industry experts are worried about the potential ripple effects on hospitals nationwide. With more than 30 hospitals under its operation across the country, Steward’s financial troubles are causing concern.

The company, which is a private, for-profit entity, is facing significant losses, prompting questions about how and when these financial issues might impact hospitals in various states. In Massachusetts, where Steward operates seven acute-care hospitals and is in the process of closing a rehabilitation facility, officials are closely monitoring patient care on a daily basis.

The company’s Massachusetts hospitals employ nearly 16,000 people and serve a large number of patients, many of whom are covered by Medicaid and Medicare. With limited hospital options in some areas where Steward facilities are located, Massachusetts Governor Maura Healey is working on contingency plans to ensure patient care and jobs are protected.

Healey has expressed frustration with Steward’s financial situation and has demanded more transparency from the company. Steward has attributed its losses to low reimbursement rates for publicly insured patients, with about 70% of its patients covered by Medicaid. Other hospital systems in Massachusetts have indicated that they would not be able to absorb Steward patients if the company’s hospitals were to fail.

Steward’s financial strain has been evident for some time, with lawsuits from vendors and contractors alleging unpaid bills and reports of significant back rent owed to its landlord. The company’s complex financial arrangements, including a deal with a real estate investment trust, have raised concerns about its long-term viability.

As Steward works to address its financial challenges and ensure continued patient care, federal officials are closely monitoring the situation. The uncertainty surrounding the future of Steward’s hospitals in Massachusetts could lead to stricter federal regulations on for-profit health care providers.