From Boom to Bust: Steward Health’s Financial Crisis

The financial crisis at Steward Health Care is shaking up the Massachusetts healthcare system. Steward’s 9 Massachusetts hospitals with 16,000 employees serving 200,000 patients are in danger of closing. The company blames low reimbursement while critics cite the evils of private equity and for-profit ownership.
So, will the hospitals stay open in the short term? And will Massachusetts take the opportunity presented by this crisis to restructure its healthcare industry to improve access, lower costs, and align incentives?
TOPICS
(04:02) The failure of the Steward Healthcare system in Massachusetts
(07:50) The difference between for-profit and not-for-profit hospitals
(11:23) The struggles of community-based hospitals in managing patient care
(14:34) Redeploying hospital expenses to primary care
(18:18) The future of community hospitals
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[@Maddawg31415]

Very nice discussion. I worked for 7 years as a paramedic in Greater Boston and a lot of what you said is super relatable (especially the part about the academic and large private institutions not getting along). Something I need to stress about Steward was 2020 was a HUGE blow to them. We hear about COVID- that’s one. I know you mentioned the flooding at Norwood- I cannot emphasize how massive of a hit that was. That area of MA does fairly well income wise and pts with good private insurance. Norwood hospital did extensive specialty care work and surgeries/interventions. When they lost Norwood, it was catastrophic a.) because they lost an entire hospital that had to get rebuilt, and b.) they lost that pt population to neighboring Sturdy/Faulkner/BI Needham/BI Milton. But as a 2nd year med student, this crisis makes me very wary about returning to practice in Ma someday because it’s as if the state doesn’t want to change and improve despite crisis.

[@writerconsidered]

I live right across the street from Norwood hospital. There were two different events. Yes the flood. But they had construction and engineers in there and fixed the hospital after the flood. Later they changed their plan. They decided to demo the whole thing and build a new hospital. That was a choice not a requirement. The whole hospital didn't need to be taken down because of the flood.

[@noellerilleau6529]

Private investors in healthcare are the profiteering problem

[@manuelmoraleda9684]

Follow the money. Who had profited and continue to profit from this problem ?

[@HughButler-lb6zs]

There wouldn't be a hospital without the money from private investirs. Duh!!!

[@manuelmoraleda9684]

@HughButler-lb6zs There are no healthcare investors in other developed countries except the U.S.

[@Maddawg31415]

Oh, I forgot to mention the Brockton Hospital fire of 2023 that shunted thousands of pts (mostly uninsured or Medicaid/Medicare) to Good Sam and overwhelmed their operations. Or the expansion of other prudent competitors this past decade (South Shore Health)

[@CareTalkPodcast]

Thanks for tuning in and sharing your perspective!

[@MartySalo]

Nice discussion. I guess Adventist health took over some of the Florida Hospitals. I am unsure about how adventist health works. We in Tampa, near USF have USF health affiliated with Tampa General Hospital. So surgeries are done by docs from TGH, at the morsani clinic. I guess Miami has Baptist Health, though I'm not entirely sure where all of the level one trauma centers are. I am a beneficiary of advances made in medical care. 1981, I was struck by a car 49 days hospitalized and coma. I came home to a hospital bed in the living room. I remastered crawling eating language. I worked for a VA Hospital system here in Tampa. The VA system is a partner with the teaching rotation for new health care professionals.

[@CareTalkPodcast]

Thank you for watching!

[@sanjaypatelmd4669]

Why don’t you talk about Ralph and his people stealing money