Property records shine light on Steward finances
Property records show Steward Health Care hospitals in Boston have numerous outstanding liens for nearly $4 million of debt to various contractors.
Steward Health Care system, the largest private for-profit healthcare network in the country, teetered along a financial cliff threatening at least four Massachusetts hospitals, but announced it had secured funding to keep all open on Friday.
The Dallas-based network owns nine hospitals in Massachusetts, including Carney Hospital in Dorchester and St. Elizabeth’s Medical Center.
According to Suffolk Country land records, the Boston-based hospitals have at least six outstanding liens, which give debtors a claim on the property as collateral until Steward pays the debt.
St. Elizabeth’s owes over $3,500,000 to various general, painting, fire protection and other contractors for work dating back to at least 2019. The vast majority of the debt, over $3 million, is held by KCD General Contractors for contracts dating to 2023.
Carney Hospital owes less, just over $300,000, based on a single outstanding lien issued in 2022 to M. Curley Painting.
Liens on both properties held by Weatherproofing Technologies for smaller debts were dissolved after payments in January.
As of Friday, the Steward Executive Vice President announced the company had secured a “significant financial transaction” to stabilize operations and keep all hospitals in Massachusetts open.
Steward owes $50 million in unpaid rent, a statement released by owner, Medical Properties Trust, Inc. said in December. The network is also facing over a dozen lawsuits in Massachusetts filed by vendors and employees regarding unpaid invoices since 2022, the Boston Globe reported.
Public officials, including several Massachusetts lawmakers, have pressed the health care system over the role of private equity mismanagement in their financial distress and brought forth discussions of the stability of current hospital funding mechanisms.
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“These are critical facilities that people depend on for all types of care, and Steward executives owe it to their 40,000-plus patients and 16,000 employees in Massachusetts to be absolutely clear about what the next steps are,” Rep. Lori Trahan said in a statement Friday. “These families deserve to know the timeline for this bridge funding, the details of this transaction, and what it means for the future of care in the Commonwealth.”
Members of Congress have pressed the Steward CEO for a briefing on the company’s financial situation.
“This does raise the issue of, how did we get here? What can we do to prevent this from happening again?” state Senate President Karen Spilka said on WBTS-TV’s @Issue aired Sunday, expressing her interest in joint hearings on the subject.
Health and Human Services Secretary Kate Walsh said in a statement the administration is aiding Steward by “actively engaged in contingency planning.”
The Department of Public Health is monitoring safety and quality on-site at Good Samaritan Medical Center, St. Elizabeth’s Medical Center, and both Holy Family Hospital campuses, Walsh said, and investigating concerns raised at all Steward facilities.
“The Healey-Driscoll administration is keeping in close contact with Steward regarding all aspects of their operations, with specific attention to the patient care and access challenges created by their financial situation,” Walsh said.