BOSTON — Steward Health Care System hospitals may still close despite the pending purchase of the chain by another health care group, said Michael Curry, president of the Massachusetts League of Community Health Centers.
And that could leave many people, particularly in lower-income communities, scrambling for coverage.
“There is extreme anxiety in the communities we serve,” Curry said. “This has real life applications.”
Sen. Ed Markey, D-Mass., hosted a press conference with Massachusetts Nurses Association (MNA) nurses and Curry on Wednesday to discuss concerns around the unfolding Steward situation.
The meeting followed a listening session Markey privately hosted with Gov. Maura Healey officials, community health leaders, doctors and staff about the “impact of corporate greed on health care in the state of Massachusetts and clearly across our country as well.”
“Any system that puts profit over patient care, wealth over health, harms patients and health care providers,” Markey said. “It must be held accountable.”
Steward Health Care System has been the topic of conversation for local, state and federal officials since the beginning of the year due to financial mismanagement, violations of Medicare rules and potential closures of facilities including the Holy Family Hospitals in Methuen and Haverhill.
On Tuesday, Steward submitted a notice to the Health Policy Commission over a sale to Optum Care. Optum previously expanded into Massachusetts with purchases in the last six years of Reliant Medical Group and Atrius Health.
Markey warned during Wednesday’s meeting that Optum cannot come into the state and “further drain” the health care system.
“There are big consequences,” Markey said. “We’re going to have to put it in the spotlight.”
Curry said the implications are unknown but there could be big consequences for staff, patients and the availability of resources. He called the situation a “crisis.”
“We need to solve for that,” Curry said. “This exacerbates all of those issues. With behavioral health, we can’t take one step back.”
A new for-profit could continue to raise prices and decrease the quality of care, he said. Markey said the state has “learned a lot” about private equity in the past 12 years and legislators need to ensure history does not repeat itself.
“It’s a bigger story than just Steward in Massachusetts,” Markey said. “It’s a larger story on the impact private equity is having on the health care system of our nation.”
Markey noted Steward never disclosed they were in financial distress. The senator, along with Sen. Elizabeth Warren, D-Mass., requested information from the for-profit hospital in January to no avail.
“They made decisions that pushed hospitals into financial instability and failed health care providers and patients,” Markey said. “Their mistakes are having a ripple effect on the rest of the health care system within the Commonwealth of Massachusetts.”
Steward Health Care System was created in 2010 by Cerberus Capital Management. It was part of Cerberus’ work to leverage six Caritas Christi hospitals.
“They acted as their namesake, a dog that guards the gates to Hades,” Markey said. “They walked hospitals into a death spiral, endless debt, unpaid vendors, overworked providers and underserved communities all across the Commonwealth.”
Steward nurses have reported searching floor-to-floor in hospitals for resources and supplies needed to deliver care, according to Ellen MacInnis, a nurse at Steward’s St. Elizabeth’s Medical Center in Brighton.
“We need to address the gaping hole in our system that has allowed these providers to take over,” MacInnis said, adding that the state had a “false belief” that an open market would ensure quality care.
Markey is hosting a congressional hearing in Boston on Wednesday, April 3. Warren will be present. The two elected officials invited Steward CEO Ralph de la Torre to testify.
“It has a direct impact on the public health in the Commonwealth every single day,” Markey said. “We need to put guard rails in place moving forward … . Health care is at the center of the well-being of every family in the Commonwealth.”
Follow Monica on Twitter at @MonicaSager3
Follow Monica on Twitter at @MonicaSager3
