Tag: justice

BOSTON — U.S. Rep. Lori Trahan is urging federal authorities to investigate Stewart Health Care System’s plans to sell its Massachusetts hospitals after the bankrupt company announced plans to close two of the facilities.

In a letter to the heads of U.S. Department of Justice, Federal Trade Commission and Department of Health and Human Services, Trahan said Steward’s decision to sell two hospitals — Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, will “have a long-lasting impact on accessible healthcare” in those communities.

The Westford Democrat, whose district includes Ayer, called on the agencies to probe the closures and “closely monitor” the sale of Steward’s six other hospitals in Massachusetts, including Holy Family’s locations in Methuen and Haverhill.

“It is crucial to ensure that healthcare services remain accessible and affordable for patients as these hospitals transition to new ownership,” Trahan wrote.

The Department of Justice and other agencies recently launched an investigation into the impact of “greed” at Steward and other health care systems. As part of the investigation, the agencies plan to review the impact of private equity firms on patient health, worker safety and the quality of care for patients.

The Texas-based company is also the target of an investigation by the U.S. Attorney’s office in Boston, which is probing allegations that include fraud and violations of the Foreign Corrupt Practices Act. The federal law prohibits U.S. companies or citizens from engaging in bribery and corruption overseas.

Trahan’s request would expand the scope of that investigation to include “domestic crimes” as well as “the consumer harms patients have faced because of the company’s actions.”

Trahan cited the role of the private equity firm Cerberus Capital Management in Steward’s finances in Massachusetts and other states. She said acquisitions and sale-leaseback deals enriched Cerberus and Steward’s executives, including CEO Ralph de la Torre.

Last week, the U.S. Senate’s Committee on Health, Education, Labor, and Pensions voted to initiate the investigation and issue a rare congressional subpoena for Steward’s CEO Ralph de la Torre to testify on Capitol Hill before the panel at a September hearing.

Steward plans to put its 31 U.S. hospitals up for sale to pay down $9 billion in outstanding liabilities owed to creditors as part of the company’s bankruptcy proceedings. The company filed for federal bankruptcy protections in May.

Bids on Steward’s Massachusetts hospitals and other states were due last week= but the company hasn’t disclosed prospective buyers. The company’s attorneys have asked a federal bankruptcy judge on Monday to postpone a court hearing on the hospital sales until Aug. 13 as it finalizes lease terms and other details.

Meanwhile, the Healey administration’s plans to provide about $30 million in repurposed state-Medicaid funding to keep the hospitals running as they transition to new ownership is facing opposition from a committee representing creditors during the company’s bankruptcy proceedings.

In a court filing late Monday, the committee said it has “significant concerns” that the $30 million pledged by the state may provide near-term (and important) assistance in transitioning the hospital to new owners, “it will do so at the expense of the rest of debtors, their estates and their creditors.”

Gov. Maura Healey has pledged that “not a dime” of the $30 million will go to Steward and will instead help ensure a smooth transition to new hospital ownership. But she noted that her administration has little or no authority to block the hospital closures.

“It’s Steward’s decision to close these hospitals, there’s nothing that the state can do, that I can do, that I have the power to do, to keep that from happening,” Healey told reporters on Monday. “We are in this situation … because of the greed of one individual, Ralph de la Torre, and the management team at Steward.”

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

BOSTON — U.S. Rep. Lori Trahan is urging federal authorities to investigate Stewart Health Care System’s plans to sell its Massachusetts hospitals after the bankrupt company announced plans to close two of the facilities.

In a letter to the heads of U.S. Department of Justice, Federal Trade Commission and Department of Health and Human Services, Trahan said Steward’s decision to sell two hospitals – Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer – will “have a long-lasting impact on accessible health care” in those communities.

The Westford Democrat, whose district includes Ayer, called on the agencies to probe the closures and “closely monitor” the sale of Steward’s six other hospitals in Massachusetts, including Holy Family’s locations in Methuen and Haverhill.

“It is crucial to ensure that healthcare services remain accessible and affordable for patients as these hospitals transition to new ownership,” Trahan wrote.

The Department of Justice and other agencies recently launched an investigation into the impact of “greed” at Steward and other health care systems. As part of the investigation, the agencies plan to review the impact of private equity firms on patient health, worker safety and the quality of care for patients.

The Texas-based company is also the target of an investigation by the U.S. Attorney’s office in Boston, which is probing allegations that include fraud and violations of the Foreign Corrupt Practices Act. The federal law prohibits U.S. companies or citizens from engaging in bribery and corruption overseas.

Trahan’s request would expand the scope of that investigation to include “domestic crimes” as well as “the consumer harms patients have faced because of the company’s actions.”

Trahan cited the role of the private equity firm Cerberus Capital Management in Steward’s finances in Massachusetts and other states. She said acquisitions and sale-leaseback deals enriched Cerberus and Steward’s executives, including CEO Ralph de la Torre.

Last week, the U.S. Senate’s Committee on Health, Education, Labor, and Pensions voted to initiate the investigation and issue a rare congressional subpoena for Steward’s CEO Ralph de la Torre to testify on Capitol Hill before the panel at a September hearing.

Steward plans to put its 31 U.S. hospitals up for sale to pay down $9 billion in outstanding liabilities owed to creditors as part of the company’s bankruptcy proceedings. The company filed for federal bankruptcy protections in May.

Bids on Steward’s Massachusetts hospitals and other states were due last week= but the company hasn’t disclosed prospective buyers. The company’s attorneys have asked a federal bankruptcy judge on Monday to postpone a court hearing on the hospital sales until Aug. 13 as it finalizes lease terms and other details.

Meanwhile, the Healey administration’s plans to provide about $30 million in repurposed state Medicaid funding to keep the hospitals running as they transition to new ownership is facing opposition from a committee representing creditors during the company’s bankruptcy proceedings.

In a court filing late Monday, the committee said it has “significant concerns” that the $30 million pledged by the state may provide near-term (and important) assistance in transitioning the hospital to new owners, “it will do so at the expense of the rest of debtors, their estates and their creditors.”

Gov. Maura Healey has pledged that “not a dime” of the $30 million will go to Steward and will instead help ensure a smooth transition to new hospital ownership. But she noted that her administration has little or no authority to block the hospital closures.

“It’s Steward’s decision to close these hospitals, there’s nothing that the state can do, that I can do, that I have the power to do, to keep that from happening,” Healey told reporters on Monday. “We are in this situation … because of the greed of one individual, Ralph de la Torre, and the management team at Steward.”

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.