Massachusetts Lawmakers Examine Private Equity Ownership in Healthcare Sector Amid Financial Crisis at Steward Health Care

Steward Health Care to Participate in Hearing at Massachusetts State House on Monday – NBC Boston

In the wake of the financial crisis at Steward Health Care, Massachusetts lawmakers are holding a hearing to examine private equity ownership in the healthcare sector. Steward, which owns nine hospitals in the state, has faced criticism for its lack of transparency, and there are concerns that if it were to withdraw from the state, it would reduce access to healthcare for hundreds of thousands of people.

Governor Maura Healey has placed blame on Steward’s management for this situation. During the hearing, a government watchdog warned about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare.

Health Policy Commission Executive Director David Seltz presented data showing a significant increase in private equity involvement 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 Seltz underscores growing concerns about the impact of private equity ownership on the healthcare industry. As an increasingly profitable sector, there is a need for greater transparency and accountability in healthcare practices to ensure that patients receive high-quality care while protecting their privacy and financial security.

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