On Thursday, the Massachusetts Senate approved a bill designed to tackle issues highlighted by Steward Health Care’s announcement of plans to sell its hospitals following its bankruptcy filing in May.
Senator Cindy Friedman, the Democratic chair of the Joint Committee on Health Care Financing, stated that the bill aims to address problems within the state’s health care system, which she claims endangers both patients and providers.
Friedman expressed concern that the focus on patient needs has been lost within the system. “Recent events with the Steward Health system have worsened an already existing crisis. While they might not be the root cause, they certainly exemplify the issue,” she said.
The proposed legislation seeks to enhance the state’s ability to monitor and control health care costs and improve the review process for health care markets. It aims to stabilize the system by holding major health care entities—such as providers, insurers, pharmaceutical companies, and investment firms—accountable to patient needs.
Key provisions of the bill include:
Expanding the authority of state agencies responsible for managing health care costs.
Strengthening the review process of the health care market.
Limiting debt accumulation by providers with private equity investments.
Updating cost containment and quality improvement programs.
Requiring for-profit health care companies to provide more detailed information about their corporate structure, financials, and investments to the Health Policy Commission.
The Health Policy Commission is an independent agency focused on creating a transparent and equitable health care system through data-driven recommendations.
The House has already passed its version of the bill. Both legislative chambers will now work to reconcile their versions into a single bill for Governor Maura Healey’s approval.
This legislative action comes amid concerns about the future of Steward Health Care’s hospitals. The Dallas-based company, which operates over 30 hospitals nationwide, plans to sell all its facilities after filing for bankruptcy protection in May. It has assured that daily operations at its hospitals will continue without interruption during the Chapter 11 process.
In Massachusetts, Steward Health Care owns eight hospitals, including St. Elizabeth’s Hospital and Carney Hospital, both located in Boston.
Additionally, U.S. Senators Edward Markey and Bernie Sanders announced that the Senate Committee on Health, Education, Labor, and Pensions will vote next week on whether to subpoena Steward CEO Dr. Ralph de la Torre.
Markey and Sanders criticized the current health care system as “dysfunctional and cruel,” alleging that it prioritizes executive wealth over patient care. “Private equity firms exploit hospitals, driving up debt and enriching themselves at the expense of patient care,” they said, further accusing de la Torre of amassing wealth by burdening hospitals with debt and selling hospital land to real estate executives at high rents.
A spokesperson for Steward Health Care has not yet responded to requests for comment.
