Local News

Embattled Steward Health Care is under federal investigation

The Department of Justice probe focuses on possible corruption in the health care company’s international business dealings.

July 13, 2024

1 minute to read

Steward Health Care is under federal investigation for potential foreign corruption violations related to its international business dealings, the company confirmed Thursday to The Boston Globe.

According to the report, the Department of Justice (DOJ) is looking into possible corruption in the Dallas-based health care company’s overseas business activity. A Steward spokesperson confirmed that the company is cooperating with the investigation but told the outlet, “As a matter of policy, Steward will have no further comment on this investigation as it remains ongoing.”

The DOJ and acting U.S. Attorney of Massachusetts, Joshua S. Levy, haven’t publicly commented on the investigation.

The probe is the latest issue in ongoing turbulence for the embattled Steward, which has struggled with financial problems and staffing issues at its health care centers. In May, the company, which runs over 30 hospitals nationwide and nine in Massachusetts, announced it had filed for bankruptcy protection and plans to sell off its hospitals.

According to the Globe report, the federal probe focuses on potential violations of the Foreign Corrupt Practices Act, which prohibits American companies from using bribery or corruption overseas.

In addition to its U.S. hospitals, Steward had tried to open centers in Malta. However, the company is now the focus of a criminal corruption investigation underway in the European island nation. No charges have been announced in that case.

After reports spread of the DOJ investigation, Sen. Edward J. Markey released a statement saying, “Instead of embracing the obligation to provide safe, high-quality care to people and communities, too many greedy CEOs view the health care system as their piggy bank.”

Markey said he plans to introduce legislation to protect communities from corporate greed in the health care system.

“Steward must be investigated, and I hope the company and the corporate executives who facilitated Steward’s actions face consequences that reflect the lives, livelihoods, safety, and security that they stole from communities,” said Markey.