In light of the financial crisis that Steward Health Care is currently facing, Massachusetts lawmakers are holding a hearing to address private equity ownership in the healthcare sector. The crisis has raised concerns about the lack of transparency from companies like Steward, which owns nine hospitals in the state.
If Steward decides to pull out of the state, it would significantly reduce access to healthcare for hundreds of thousands of people. Governor Maura Healey has placed blame on the company’s management for this situation. Lawmakers heard from a government watchdog warning about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare during the hearing.
The data presented by David Seltz, Executive Director of the Health Policy Commission, highlights the growing concerns about private equity ownership in healthcare transactions in Massachusetts over recent years. The percentage of transactions involving private equity interests has more than doubled, raising concerns about the future of healthcare in the state. Seltz emphasized the need for urgent action to address these trends before they escalate further.
The crisis at Steward Health Care underscores the need for greater transparency and accountability in healthcare practices as industry consolidation continues to evolve. The need for urgent action to address these trends is becoming increasingly urgent as lawmakers seek to protect access to healthcare for all residents in Massachusetts.
