Southcoast Health has indicated interest in purchasing a Fall River hospital owned by struggling Steward Health Care, with the aim of maintaining care for patients and preventing the facility from potentially shutting down.
David McCready, CEO of Southcoast Health, stated that his organization is very interested in acquiring St. Anne’s Hospital.
McCready conveyed in a message on Friday that St. Anne’s patients and employees are part of their community and they believe the best option for the hospital is for it to become part of the Southcoast Health family.
Senators Elizabeth Warren and Ed Markey requested that CEO Ralph de la Torre explain the mismanagement, private equity schemes, and executive profiteering at Steward, a for-profit company.
The senators expressed concerns about Steward's massive debt, which raises questions about unpaid vendors, patient care, and job losses, as well as uncertainty about the potential closure and restructuring of hospitals.
The senators wrote to Steward’s CEO, accusing him of trying to secure a last-minute deal to walk away, leaving state officials to find a solution to maintain care.
Southcoast Health runs three hospitals in Massachusetts and is now planning to assess whether any type of acquisition with Steward is possible.
A Steward spokesperson did not directly address the possibility of the company being interested in acquiring St. Anne’s Hospital.
Steward Health Care is collaborating with state officials and others to transition ownership of the Massachusetts hospitals in a way that benefits patients, employees, and the Commonwealth.
McCready expressed alarm about Steward's plan to sell off its nine Massachusetts hospitals, following increased scrutiny over its financial distress and incomplete financial reporting to state regulators.
McCready pointed out that the transaction to sell the hospitals could be highly complex and potentially devastating for patients and employees if there is a service interruption, or if the hospitals have to close.
Warren and Markey wrote a letter to de la Torre, asking for information by March 21 about the pay of top Steward executives, and the financial arrangement between Steward and Medical Properties Trust, which acts as the landlord for Steward hospitals. They also asked about Steward's plan to repay its debt and leave Massachusetts, as well as previous dealings with private equity firm Cerberus Capital Management.
The senators insisted that Steward provide verified financial statements for the fiscal years ending Dec. 31 of 2022 and 2023.
The letter accuses Steward of causing financial problems for its Massachusetts hospitals due to years of mismanagement, private equity tactics, and executive profiting. It also raises concerns about de la Torre's 14-year leadership and alleged use of two private jets and ownership of two luxury yachts.
— Alison Kuznitz / State house News Service
Ralph de la Torre
