Gov. Healey tells hospital company Steward to leave after it misses financial deadline
Steward Health Care System failed to hand over legally mandated financial documents by the stated Friday deadline, the Governor’s Office said.
“The financial information that Steward provided this week continues to be incomplete and insufficient,” Karissa Hand, spokesperson for Gov. Maura Healey, said in a statement Saturday morning. “What Steward must do from this point forward is clear — complete an orderly transition out of Massachusetts.”
On Tuesday, Healey sent a letter to Steward CEO Ralph de la Torre demanding the embattled company turn over long-overdue documents to shed light on their current financial situation and how they got there.
The Dallas-based company, which is the largest private for-profit healthcare network in the U.S., owns nine hospitals in Massachusetts. Steward has come under fire for a long list of financial woes exposed over the winter, starting with the company announcing it is $50 million behind in rent and followed by the publicity of several lawsuits alleging the company has filed false Medicare claims and not paid contractors and staff.
The company filed to close New England Sinai Hospital in Stoughton in the spring and reportedly failed to pay contractors to keep them working on Norwood Hospital, which closed due to flooding in 2020. The state has installed Department of Public Health staff at all Steward hospitals to ensure safety and quality care standards in recent weeks.
In her letter, Healey noted the company is defying Massachusetts state law and a court order requiring the company to turn over audited financial statements. The lack of information on the company’s “financial status, operating plans, and contingency strategies” over the last several years, Healey wrote, impedes the state’s ability to navigate the crisis and protect workers and patients.
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“During that time, there have been reports of mismanagement, unpaid vendors, legally questionable practices and exorbitant profits for your equity partners and yourself, all while your hospitals continued to struggle financially,” Healey wrote.
In a response to the letter, Steward said they have tried to be “transparent, compliant and cooperative” and will “commit” to do better. The company submitted “all of the audited financial statements that have been prepared” and drafts for years with incomplete audits, Steward said.
Steward also told state officials they do not have the required audited financial statements, according to the administration.
Healey said the company should find new operators for the seven hospitals — not including the currently-closed Norwood Hospital and soon-to-be-closed New England Sinai — “as soon as possible.”
Healey’s office did not state directly what the next steps are following the missed deadline. The administration said state officials are reviewing documentation and continuing to push for transparency and oversight.