Mass. Sens. Warren, Markey push back against Steward, United proposal

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Mass. Sens. Warren, Markey push back against Steward, United proposal

The fallout is growing again against embattled Steward Healthcare as the company tries to sell off some of its assets in Massachusetts to catch up on back bills.Steward disclosed to the state it wants to sell its network of physicians to United Health Group, a move that could help Steward pay some of its bills, including a reported $50 million in unpaid rent. It’s also trying to sell its nine Massachusetts hospitals.Steward recently confirmed its interest in leaving the state and Gov. Maura Healey has demanded they leave. Last month, the company said it had secured bridge financing to give it time to transfer at least some of its hospitals to other operators.The state’s Health Policy Commission will review the proposed sale and the impact on patients.“It may be a desperation move for Steward, but it doesn’t mean it’s a bad thing for the commonwealth,” said health care expert David Williams.Williams said the hospitals will be less attractive without the package deal of a doctors group included.“The physicians are a feeder to the hospital. If I’m Steward – owning hospitals and physicians – I want those physicians to refer patients to the hospital where I can do expensive things to them,” he said. That expensive care is why Williams said we should transition to more clinics and doctors’ offices.”We actually need to move care out of the hospital and into the community,” he said. “It’s probably better if we didn’t have as many hospitals.”But neither Sen. Elizabeth Warren nor Sen. Ed Markey are buying into the new proposal.”I am concerned that this sale will not benefit patients or health care workers, or guarantee the survival of these facilities,” Warren said in a statement. “It would be a terrible mistake for Steward to be allowed to walk away while looting Massachusetts hospitals one more time.”Warren pointed out Optum is already the largest employer of doctors in the country, controlling over 10% of the market.”Optum, a UnitedHealth Group subsidiary, is already the largest employer of physicians in the country, controlling over 10 percent of American doctors, which means this deal raises significant antitrust concerns in Massachusetts and nationally,” Warren said in a statement. Williams said Massachusetts already has a medical giant: Mass General Brigham.”I actually think it may be a positive thing, so it’s maybe two gorillas wrestling. Now the question is, should we have huge gorillas? That’s an open question, but I actually think this improves the power within Massachusetts,” he said. Markey has said he plans to convene a congressional field hearing about Steward’s troubles on April 3 and that he plans to call Steward executives – including CEO Dr. Ralph de la Torre – to testify.Dallas-based Steward operates the following hospitals in Massachusetts: Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family in Haverhill and Methuen, Morton Hospital in Taunton, Nashoba Valley Medical Center, New England Sinai Hospital, Norwood Hospital, Saint Anne’s Hospital in Fall River and St. Elizabeth’s Medical Center in Brighton.The company employs more than 16,000 nurses, doctors, and other frontline, essential health care workers in the state.

The fallout is growing again against embattled Steward Healthcare as the company tries to sell off some of its assets in Massachusetts to catch up on back bills.

Steward disclosed to the state it wants to sell its network of physicians to United Health Group, a move that could help Steward pay some of its bills, including a reported $50 million in unpaid rent. It’s also trying to sell its nine Massachusetts hospitals.

Steward recently confirmed its interest in leaving the state and Gov. Maura Healey has demanded they leave. Last month, the company said it had secured bridge financing to give it time to transfer at least some of its hospitals to other operators.

The state’s Health Policy Commission will review the proposed sale and the impact on patients.

“It may be a desperation move for Steward, but it doesn’t mean it’s a bad thing for the commonwealth,” said health care expert David Williams.

Williams said the hospitals will be less attractive without the package deal of a doctors group included.

“The physicians are a feeder to the hospital. If I’m Steward – owning hospitals and physicians – I want those physicians to refer patients to the hospital where I can do expensive things to them,” he said.

That expensive care is why Williams said we should transition to more clinics and doctors’ offices.

“We actually need to move care out of the hospital and into the community,” he said. “It’s probably better if we didn’t have as many hospitals.”

But neither Sen. Elizabeth Warren nor Sen. Ed Markey are buying into the new proposal.

“I am concerned that this sale will not benefit patients or health care workers, or guarantee the survival of these facilities,” Warren said in a statement. “It would be a terrible mistake for Steward to be allowed to walk away while looting Massachusetts hospitals one more time.”

Warren pointed out Optum is already the largest employer of doctors in the country, controlling over 10% of the market.

“Optum, a UnitedHealth Group subsidiary, is already the largest employer of physicians in the country, controlling over 10 percent of American doctors, which means this deal raises significant antitrust concerns in Massachusetts and nationally,” Warren said in a statement.

Williams said Massachusetts already has a medical giant: Mass General Brigham.

“I actually think it may be a positive thing, so it’s maybe two gorillas wrestling. Now the question is, should we have huge gorillas? That’s an open question, but I actually think this improves the power within Massachusetts,” he said.

Markey has said he plans to convene a congressional field hearing about Steward’s troubles on April 3 and that he plans to call Steward executives – including CEO Dr. Ralph de la Torre – to testify.

Dallas-based Steward operates the following hospitals in Massachusetts: Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family in Haverhill and Methuen, Morton Hospital in Taunton, Nashoba Valley Medical Center, New England Sinai Hospital, Norwood Hospital, Saint Anne’s Hospital in Fall River and St. Elizabeth’s Medical Center in Brighton.

The company employs more than 16,000 nurses, doctors, and other frontline, essential health care workers in the state.

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