Steward's Hospital Sales Under Scrutiny: A Closer Look at the Impact on Massachusetts Healthcare

In a move to accelerate the sales of six Massachusetts hospitals and a physicians group, the state Health Policy Commission (HPC) is urging a thorough review of the deals. The commission's staff is tasked with analyzing the commitment of buyers to healthcare access and equity, as well as the impact of the sales on healthcare costs and competition. This intense scrutiny comes as Steward Health Care, the bankrupt hospital chain, faces a looming deadline to finalize the sales. Commissioners have expressed concerns about the potential buyers, particularly Rural Healthcare Group, an affiliate of private equity firm Kinderhook Industries. This group is set to acquire Steward's physicians group, which employs or contracts with over 2,950 doctors in Massachusetts. Commissioners are worried about the group's ability to provide equitable care to low-income patients, patients of different racial backgrounds, and patients in all geographic areas. Commissioner Tim Foley emphasized the importance of maintaining healthcare services in neglected communities, particularly in the wake of the recent closures of Carney Hospital and Nashoba Valley Medical Center. He urged the commission to focus on service lines and access in their reviews. The HPC is working under an accelerated timeline to finalize the reviews, but the commission's executive director, David Seltz, acknowledged the complexity of the process. With multiple transactions underway, the team is working diligently to ensure that the sales meet the state's healthcare goals.