While the fate of Steward Health Care’s nine hospitals in Massachusetts remains in doubt, lawmakers and others are discussing what — and who — is to blame for the precarious state of the medical system. Many are pointing fingers at the role of for-profit companies, like Steward, in health care.
State and federal officials expect Steward to reveal its plan soon, and said they’re reviewing several potential options should Steward shutter any of its Massachusetts facilities.
In a meeting last week with congressional staffers, Steward executives said the company plans to leave Massachusetts, according to U.S. Rep. Stephen Lynch, a Massachusetts Democrat, who was briefed after the meeting.
According to Lynch, Steward executives told his staff the situation is “urgent” at four of the company’s hospitals: St. Elizabeth’s in Brighton, Norwood Hospital, Holy Family Hospital in Haverhill and Methuen, and Nashoba Valley Medical Center in Ayer. The company indicated it would halt the planned reconstruction of Norwood Hospital, a 200-bed facility that closed after flooding in 2020.
They expressed their intent to exit the Massachusetts health care market,” Lynch said.”We had not had advance notice prior to a week ago that they were in difficulty, or that they were contemplating exiting the Massachusetts health care market.”
Lynch called the pronouncement from Steward “surprising,” and said he would have expected more notice. He pointed out that Steward has received more than $150 million in federal funding for its Massachusetts operations over the past few years. He’s wondering where the money went. He said Steward did not say when it might leave the state.
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“I think the underlying message is that the for-profit model does not work,” Lynch said.
“[Steward] is a for-profit health care network, and I firmly believe that it’s very difficult to pursue two missions: to generate profits and still provide high quality health care.”
Steward, which is among the largest hospital operators in Massachusetts, did not respond to requests for comment Wednesday. The company has said its financial losses jeopardize operations in the state and has blamed low reimbursement rates for Medicare and Medicaid patients.
Members of the Massachusetts congressional delegation are drafting a letter to Steward asking the company to answer questions about its finances and its plans for the future. The delegation has already called on Steward to attend a briefing and outline its plans.
At a congressional subcommittee hearing Wednesday, Massachusetts U.S. Rep. Lori Trahan said for-profit investment in health care is harming patients — especially those in her district north of Boston where some of Steward’s hospitals are located. Trahan blamed Steward’s “financial negligence” for causing the company’s difficulties.
