Private Equity-Backed Steward Healthcare Files for Bankruptcy
Saturday, May 11, 2024 at 8:41AM Arizona Attorney General Kris Mayes (1) has launched an investigation into what led to Dallas-based Steward Health Care filing for Chapter 11 bankruptcy protection on May 6. The health system also recently shared that it is $9 billion in debt and has plans to sell all 31 of its hospitals, four of which are in Arizona and have a proposed auction date of June 28, according to a May 10 news release from Ms. Mayes (1).
Steward relied on backing from private equity investors to quickly acquire dozens of community hospitals, including facilities in Massachusetts, Texas, Florida, and Arizona. Steward has been the focus of a year-and-a-half-long CBS News investigation revealing how private equity investors have siphoned hundreds of millions of dollars from community hospitals with devastating public health consequences (2). Records reviewed by CBS News showed Steward hospitals around the country left a trail of unpaid bills, at times risking a shortage of potentially lifesaving supplies.
Steward's Arizona hospitals include: Florence (Ariz.) Hospital, Mountain Vista Medical Center in Mesa, Ariz., St. Luke's Behavioral Health Center in Phoenix, and Tempe (Ariz.) St. Luke's Hospital. Along with the hospitals, Steward also operates multiple medical practices across the state.
“Arizonans deserve to know more about the circumstances that led to Steward's bankruptcy filing," Ms. Mayes said in the release (1). "I am deeply concerned about the potential impact this could have on Arizona patients and medical providers. No matter who ultimately ends up owning and operating these facilities, I am committed to ensuring that no Arizonan is harmed by this bankruptcy, and I will fight to ensure that these hospitals remain open at all times to care for patients without any degradation of service."
Richard A. Robbins MD
Editor, SWJPCCS
References
- Arizona Attorney General. Attorney General Mayes Announces Investigation into Steward Health Care’s Bankruptcy. May 10, 2024. Available at: https://www.azag.gov/press-release/attorney-general-mayes-announces-investigation-steward-health-cares-bankruptcy (accessed May 11, 2024).
- Schooley M, Hager C, Kaplan M. Steward Health Care files for Chapter 11 bankruptcy. CBS Boston. May 7, 2024. Available at: https://www.cbsnews.com/boston/news/steward-health-care-bankruptcy/ (accessed May 11, 2024).