In light of the financial crisis facing Steward Health Care, Massachusetts lawmakers are currently holding a hearing to address private equity ownership in the healthcare sector. The crisis has raised concerns about the lack of transparency from companies like Steward, which owns nine hospitals in the state.
If Steward Health Care decides to pull out of the state, it would significantly reduce access to healthcare for hundreds of thousands of people. Governor Maura Healey has placed blame on the company’s management for this situation. Lawmakers heard from a government watchdog warning about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare during the hearing.
The Health Policy Commission Executive Director David Seltz presented data showing a significant increase in the involvement of private equity in healthcare transactions in Massachusetts over recent years. The percentage of transactions involving private equity interests has more than doubled, raising concerns about the future of healthcare in the state. Seltz emphasized the need for urgent action to address these trends before they escalate further.
The data presented by the Health Policy Commission underscores the growing concerns about the impact of private equity ownership in the healthcare industry. The need for transparency and accountability in healthcare practices is becoming increasingly urgent as the industry continues to evolve.
