U.S. Senators Ed Markey and Elizabeth Warren have raised concerns over the leadership of Steward Health Care, accusing the organization of engaging in predatory practices under the influence of private equity firms. The Senators recently attended a U.S. Senate subcommittee field hearing at the State House, focused on the impact of corporate greed on patient care and health workers.
During the hearing, it was noted that Steward CEO Dr. Ralph de la Torre declined an invitation to testify, leaving an empty chair with his name on a placard. Senator Markey criticized the absence of Steward’s representation, emphasizing the need for safeguards to protect patients and healthcare providers from the consequences of private equity involvement in the healthcare system.
The financial crisis at Steward has sparked discussions on the sustainability of its hospitals in Massachusetts, with Governor Maura Healey even advocating for the hospital chain to exit the state. Both federal and state lawmakers are now scrutinizing the role of private equity in healthcare, particularly since Steward Health Care was formed in 2010 through an acquisition by Cerberus Capital Management.
Senator Warren described the situation at Steward as a clear example of private equity exploiting for-profit healthcare, leading to detrimental consequences for both patients and healthcare workers. She emphasized the need for legislative action to hold healthcare executives and investors accountable for their actions, proposing a bill that would prevent asset sales or mortgages to real estate investment trusts by federally funded healthcare entities.
Similarly, Senator Markey announced plans for a draft legislation, the “Health Over Wealth Act,” seeking increased transparency from private equity-owned healthcare entities. The bill would also mandate public notification and community input before hospitals can close or reduce services. Both Senators are committed to working with state lawmakers to implement regulations that protect Massachusetts’ healthcare system from similar predatory practices.
In conclusion, the scrutiny of Steward Health Care’s operations highlights the broader issue of private equity influence in healthcare and the urgent need for legislative safeguards to ensure patient care remains a top priority. Through collaborative efforts at the federal and state levels, lawmakers aim to prevent future instances of financial exploitation within the healthcare industry.
Read More Health News
