Health

Lawmakers want answers from hospital group Steward amid financial difficulties

Dallas-based Steward operates Good Samaritan Medical Center, which legislators pointed to as the only acute care hospital in the Greater Brockton area.

Steward Good Samaritan Medical Center in Brockton in 2020. Craig F. Walker/Globe Staff

January 24, 2024

2 minutes to read

Mass. legislators are looking for answers from Steward Health Care after the hospital said they are facing financial difficulties running their suburban and South Shore area hospitals.

Sens. Ed Markey, Elizabeth Warren and all nine Mass. U.S. representatives signed a letter Tuesday asking for a debrief from Steward, citing concerns the hospital owner could abandon communities in need.

Steward’s 10 Massachusetts hospitals include New England Sinai Hospital in Stoughton, Morton Hospital in Taunton, Nashoba Valley Medical Center in Ayer, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospitals in Haverhill and Methuen, Norwood Hospital, Saint Anne’s Hospital in Fall River, and St. Elizabeth’s Medical Center in Brighton.

“The abrupt closure of Steward’s Massachusetts hospitals would significantly limit access to inpatient critical care and inpatient behavioral health care, as well as maternal and newborn health services in eastern Massachusetts,” the lawmakers said. “The burden of Steward hospital closures would be borne primarily by the Massachusetts residents who already experience the greatest challenges accessing health care.”

Dallas-based Steward also operates Good Samaritan Medical Center, which legislators point out as the only acute care hospital in the Greater Brockton area. Brockton Hospital, run by Signature Healthcare, is still temporarily closed after a 10-alarm fire early last year.

Steward’s losses could ‘jeopardize care’

Steward said their financial troubles are tied to the pandemic and low reimbursements from federal programs Medicare and Medicaid. The hospital group said there’s a mounting gap between commercial health insurance reimbursement and reimbursements from federal plans.

Steward said Wednesday the notice from legislators “is an indication of how important our community hospitals are to the state.”

“Given that 70 percent (of) our patients are covered by state and federally funded programs, we look forward to briefing the delegation and exploring potential solutions,” a Steward spokesperson said.

At an average hospital in Massachusetts, 38% of patients are covered by Medicare and Medicaid, according to Definitive Healthcare.

Steward also said they are working with Gov. Maura Healey and Attorney General Andrea Campbell to keep their doors open for communities.

“Residents, workers, regulators, and elected officials must have a seat at the table for conversations about Steward’s plans for the future to ensure continued access to high quality medical care in their communities,” Markey and the other legislators said in their release.

Steward isn’t the only hospital group facing difficulties. In 2023, Compass Medical, a chain of care centers in South Shore, unexpectedly shut down, leaving 70,000 patients eligible for compensation.