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Healey: Steward needs to release financial docs and leave Massachusetts

“You and your team have not been forthcoming, truthful or responsive about what’s happening with your financial status, operating plans, and contingency strategies,” Healey wrote to Steward's CEO.

Norwood Hospital in 2020. Jonathan Wiggs/Globe Staff

February 20, 2024

2 minutes to read

Steward Health Care, the troubled operator of nine hospitals in Massachusetts, has three days to release their audited financial statements after years of obscuring them, Gov. Maura Healey told their CEO, before the state takes further steps to protect employees and patients.

Healey wrote to Steward’s CEO Ralph de la Torre on Tuesday instructing the hospital giant to safely staff their hospitals in Massachusetts, allow the Department of Public Health to monitor their operations, and to immediately release financial documents.

“You and your team have not been forthcoming, truthful or responsive about what’s happening with your financial status, operating plans, and contingency strategies,” Healey wrote. “Navigating this acute crisis, which is of your making, without complete transparency and real-time information, harms our ability to protect patients, our workforce and our state.”

When asked if Steward would comply with the governor’s requests, Steward said in a statement that they have previously given the state financial documents. It is unclear if the healthcare company, based in Dallas, had already complied with this new three-day deadline.

“We have been working closely with state officials – including providing extensive financial records as requested as well as on-site monitors and cooperation with the Department of Public Health and others,” a spokesperson said in a statement Tuesday night. “In late 2023 and early 2024, Steward gave regulators in the Commonwealth the audited financial documentation they had requested and is continuing to cooperate closely.”

Operations at Steward’s hospitals have been jeopardized due to the company’s debts. Steward employs 16,000 people in Massachusetts.

Their medical centers 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.

Healey said in her letter that the state has “no insight” into Steward’s financial situation, leaving patients vulnerable. According to the governor, Steward has ignored Massachusetts law to disclose their financial statements, even after a court order during Healey’s time as attorney general.

“You have refused to comply with the court order and continued to delay and obfuscate,” Healey wrote. “During that time, there have been reports of mismanagement, unpaid vendors, legally questionable practices and exorbitant profits for your equity partners and yourself, all while your hospitals continued to struggle financially.”

Healey said Steward should begin transitioning their facilities to new operators “as soon as possible” after disclosing their finances.

Steward, who said they care for more than a million patients in vulnerable communities in Massachusetts, said “we look forward to working cooperatively with the Governor on a solution we all agree must be found to guarantee continuity of care.”