‘Unnerving and unsettling:’ State expands oversight amid Steward hospital crisis

The Department of Public Health is expanding oversight over all nine Steward hospitals as the health care network remains in imminent financial peril, officials said at a Public Health Council meeting featuring a rare appearance from the governor Wednesday morning.

“The bottom line is this time we do not know what the future of Steward hospitals will be,” Public Health Commissioner Robbie Goldstein said during a Steward update Wednesday. “That said it’s likely that there will need to be some reorganization reconfiguration, transition and potential closures for Stewart hospitals and the healthcare they deliver.”

Steward Health Care announced in early January that it owed over $50 million in unpaid rent. Later, more than a dozen lawsuits in Massachusetts from unpaid vendors and employees came to light. The Dallas-based network is the largest private for-profit healthcare network in the country and operates nine hospitals in Massachusetts.

The network indicated at least four hospitals in the state were under threat of closure, but in early February announced they secured necessary funding to keep all Massachusetts hospitals open. The ongoing financial crisis has brought the model of funding hospitals through private equity under renewed political and regulatory scrutiny.

“I’ve been on the council for 10 years, and this is the first time that governor has come to speak to us,” council member Dr. Edward Bernstein said Wednesday. “The sort of monitoring that’s taking place is something I haven’t seen in this history. And I think we’re approaching a public health crisis or emergency.”

At Wednesday’s meeting, Goldstein said Steward must face its own financial challenges, but the governor’s administration and DPH are working together on oversight at the hospitals and contingencies for closures.

DPH has had quality and safety monitors at four hospitals — St. Elizabeth’s Medical Center, Good Samaritan Medical Center, Holy Family Hospitals in Haverhill and Methuen — for several weeks, Goldstein said, and will expand to monitor all Steward hospitals by next week.

“Our monitors are looking at staffing, services, supplies and equipment to assess that the hospital has what it needs and is required to have to deliver safe and high quality care in each of the facilities,” said Goldstein, adding that the teams are in contact with staff.

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The department is working with federal regulators, Massachusetts hospitals, leaders, labor unions, insurers, and community organizations as the situation progresses on contingencies and concerns, the commissioner said.

Goldstein noted the Steward crisis is unfolding as Massachusetts health care is already “confronting unprecedented capacity constraints” and in a “enormously challenging and unsustainable” situation.

Healey said she has had a history with Steward as the former Attorney General, including taking the company to court to get financial information, and expressed frustration with the company’s continued suspect practices.

“I know this is a situation of deep concern to all of us and especially to you as public health leaders,” Healey said. “I want you to know that it is an urgent priority and has been for me and for our entire administration.”

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