Healey Tells Steward Health Care "You're on your own". (lease, insurance)

[BugsyPal]

Originally Posted by bostongymjunkie

I fully grasp its place in the system and the ripple effects to the community, but it's a private for-profit company that has been flouting state finance reporting regulations, and they have not submitted any plan. The state certainly has a role in facilitating contingencies and perhaps helping to broker discussions among the healthcare community's leadership perhaps leading to sale and/or merger. But the problems faced by this private for-profit company are its own and the state should not be in a position of bailing it out in any fashion.

Again, this is not Stewart's first time at the rodeo.

https://prospect.org/health/2024-01-...teward-health/

[robr2]

Originally Posted by bostongymjunkie

I fully grasp its place in the system and the ripple effects to the community, but it's a private for-profit company that has been flouting state finance reporting regulations, and they have not submitted any plan. The state certainly has a role in facilitating contingencies and perhaps helping to broker discussions among the healthcare community's leadership perhaps leading to sale and/or merger. But the problems faced by this private for-profit company are its own and the state should not be in a position of bailing it out in any fashion.

I don't believe that the state should bail out Steward and let them to continue to operate the hospitals. I see a path where the state help fund the hospitals while they go through a reorganization. Steward and Medical Properties Trust would have give up it's claims and allow another healthcare organization take over.

[GeePee]

They are currently $3 million (ish) in default to my employer. We were a contractor for them up until 3 months ago until they pulled all there work from us abruptly. They were a terrible company to work with and had Primary's leaving their network by the dozens on a weekly basis. Good times!

[Iced_Coffee]

Originally Posted by GeePee

They are currently $3 million (ish) in default to my employer. We were a contractor for them up until 3 months ago until they pulled all there work from us abruptly. They were a terrible company to work with and had Primary's leaving their network by the dozens on a weekly basis. Good times!

Yeah, my primary was with them for many years and about a year ago (maybe less) he up and left for MGB. Seems like a few others from that office did the same.

[james777]

Originally Posted by robr2

I don't believe that the state should bail out Steward and let them to continue to operate the hospitals. I see a path where the state help fund the hospitals while they go through a reorganization. Steward and Medical Properties Trust would have give up it's claims and allow another healthcare organization take over.

Medical Properties Trust should not have to give up anything. They purchased the property fair and square in a transaction that was very favorable to Steward by providing Steward the cash to continue operations and expand. It is the deregulation and reregulation of the health care industry by government officials and Steward's mismanagement and greediness that created this mess. Unfortunately, if Steward does go under, Medical Properties Trust could also be thrown into bankruptcy.

[OutdoorLover]

Originally Posted by GeePee

They are currently $3 million (ish) in default to my employer. We were a contractor for them up until 3 months ago until they pulled all there work from us abruptly. They were a terrible company to work with and had Primary's leaving their network by the dozens on a weekly basis. Good times!

That they are nor meeting their legal requirements for reporting for their business, and are fighting in court to prevent disclosures of the required information indicates that they are not working with the state in good faith, and I'd say that it also suggests that at a minimum, their position is far worse than they have disclosed, and they may also be hiding some kind of irregularities in how they've run this business.

That doesn't sound like a place that deserves a bailout. Not unless you investigate and flush the rats out and disinfect it first.

[newenglandgal123]

PE usually ruins companies. I've worked for a couple of firms that were acquired by PE. The only folks who really benefit are the highest levels of management of the company being acquired (Pres, COO, etc.) plus those in the PE firm. They 'extract value' from everything. Then they all go and buy their multiple million dollar+ properties and luxury cars as they get their payouts (beach houses, rental properties, G Wagons..you name it.) I've seen it first hand. They leave their long term employees out to dry as the acquiring firm typically gets rid of all the original employees and brings in their own or new. The smart ones usually leave before that starts to happen. I know that's what I did, about 4-5 months after getting acquired I knew what would be happening so I jumped ship.

[Iced_Coffee]

Originally Posted by BugsyPal

Again, this is not Stewart's first time at the rodeo.

https://prospect.org/health/2024-01-...teward-health/

This Prospect.org story is wild. The corruption goes so far, it seems. And it's not JUST the private equity, either.

[robr2]

Originally Posted by GeePee

They are currently $3 million (ish) in default to my employer. We were a contractor for them up until 3 months ago until they pulled all there work from us abruptly. They were a terrible company to work with and had Primary's leaving their network by the dozens on a weekly basis. Good times!

There was a story in the Globe on Thursday that a medical device company had repossessed their products from St. E's. One patient died in an emergency situation due to the lack of the device.

[robr2]

Originally Posted by james777

Medical Properties Trust should not have to give up anything. They purchased the property fair and square in a transaction that was very favorable to Steward by providing Steward the cash to continue operations and expand. It is the deregulation and reregulation of the health care industry by government officials and Steward's mismanagement and greediness that created this mess. Unfortunately, if Steward does go under, Medical Properties Trust could also be thrown into bankruptcy.

MPT isn't going to go into bankruptcy. They own close to 450 facilities across the globe and recently sold an undeclared interest in Steward properties to an asset manager for $105 million citing the favorable conditions for letting other investors in.

Also note that of the $1.25 billion Steward received, $1 billion went to Cerebus when they divested Steward.

IMHO, MPT should consider the optics of the situation. They could forgive part of the monies owed and consider selling the properties to whoever takes over the facilities should that happen. Holding on to empty medical facilities doesn't generate any income to them.