Private Equity ownership in healthcare: Steward’s Struggles Illustrate the Need for Transparency and Accountability in Massachusetts Healthcare Sector

Steward Health Care to Participate in Hearing at Massachusetts State House on Monday – NBC Boston

As the financial crisis facing Steward Health Care deepens, lawmakers in Massachusetts are holding a hearing to address private equity ownership in the healthcare sector. Steward, which owns nine hospitals in the state, has come under scrutiny for its lack of transparency and the potential impact on access to healthcare if it decides to pull out of the state.

The Health Policy Commission has warned about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare during the hearing. The Commission’s Executive Director David Seltz presented data showing that the involvement of private equity in healthcare transactions in Massachusetts has more than doubled over recent years. This raises concerns about the future of healthcare in the state and underscores the urgent need for action to address these trends before they escalate further.

Governor Maura Healey has placed blame on Steward’s management for this situation and urged lawmakers to take immediate action. Lawmakers are calling for greater transparency and accountability in healthcare practices as they continue to evolve. If Steward Health Care decides to leave Massachusetts, it could significantly reduce access to healthcare for hundreds of thousands of people.

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