• Fri. Jun 14th, 2024

Private Equity in Healthcare: Massachusetts Investigates Steward’s Financial Troubles as Part of Broader Examination

BySamantha Jones

Mar 25, 2024
Legislators focus on private equity’s role in healthcare as Steward faces challenges

Massachusetts officials are currently investigating the factors that led to Steward Health Care’s financial troubles, but it is not just one for-profit system that is affected by a growing trend of private equity involvement in the healthcare industry.

Between 2013 and 2023, the Health Policy Commission (HPC) examined 182 provider purchases and sales, and their data revealed that the share of transactions involving private equity interests more than doubled during this period. According to HPC Executive Director David Seltz, between 2013 and 2016, private equity was involved in about 25 percent of transactions. This figure increased to 47 percent between 2017 and 2020 and to 63 percent between 2020 and 2023.

Leaders at the HPC have been discussing this trend since December, but the issues at Steward have brought them into sharper focus. Seltz highlighted the need for urgent action to address the challenges posed by private equity, for-profit ownership, and industry consolidation in the healthcare sector.

The Health Care Financing Committee has been tasked with investigating gaps in the state’s regulatory framework and proposing policy changes to prevent similar problems at other facilities. Seltz also mentioned that the HPC was not informed about the acquisition of Steward’s Massachusetts properties by Medical Properties Trust, which led to significant financial difficulties for the company. The situation is still developing as lawmakers continue to examine how private equity involvement has impacted Massachusetts’ healthcare system.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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