Steward Bankruptcy Leads to Hospital Closures

The Crisis at Carney Hospital: A Community’s Fight for Survival

In the heart of Boston’s Dorchester neighborhood, Donna Gittens faced a terrifying moment last summer. As she struggled to articulate her thoughts, she feared she was experiencing a stroke. Rushed to Carney Hospital, just minutes from her home, Gittens found herself in a life-or-death situation. The medical team at Carney unraveled a complex health mystery, ultimately diagnosing her with a brain infection. Grateful for the timely intervention that saved her life, Gittens now finds herself in a new battle: the potential closure of her local hospital.

A Community in Peril

Gittens is not alone in her concerns. Carney Hospital, a vital healthcare resource for the diverse and mixed-income population of Dorchester, is one of two Massachusetts hospitals slated for closure on August 31. This decision follows a tumultuous period for Steward Health Care, the for-profit hospital chain that owns Carney. After filing for bankruptcy in May 2023, Steward has faced numerous crises, including allegations of financial mismanagement and inadequate patient care across its facilities.

The impending closure of Carney Hospital raises alarms for residents who rely on its emergency services. Gittens, reflecting on her experience, expressed her fears: "During medical emergencies like mine, timely care can be the difference between life and death." The loss of Carney would leave many in the community without essential medical care, exacerbating existing health disparities.

The Steward Health Care Saga

Steward Health Care’s troubles began when it was acquired by Cerberus Capital Management in 2010. Under the leadership of Dr. Ralph de la Torre, the company aggressively expanded, acquiring over 30 hospitals. However, this expansion came at a cost. A controversial sale-leaseback deal left Steward burdened with approximately $9 billion in debt, including over $6 billion in lease payments to its landlord, Medical Properties Trust.

As the financial strain mounted, Steward announced plans to close several hospitals and lay off thousands of employees, igniting outrage among community leaders and lawmakers. Massachusetts Governor Maura Healey has publicly criticized de la Torre, attributing the hospital chain’s collapse to "the greed and exploitation" of its executives. Despite community pleas to keep Carney open, the state has no plans to intervene, leaving residents anxious about their healthcare future.

A Broader Crisis in Healthcare

The situation at Carney Hospital is not an isolated incident. Across the country, the impact of private equity investments in healthcare is under scrutiny. With private equity firms owning about 1 in 5 for-profit hospitals in the U.S., concerns are growing about the sustainability of these institutions. Lawmakers, including Senator Bernie Sanders, are questioning how many hospitals are being loaded with debt to enrich a select few executives while jeopardizing patient care.

In Arizona, a Steward-owned psychiatric hospital was forced to suspend operations due to inadequate air conditioning during extreme heat. In Louisiana, a Steward facility faced multiple "immediate jeopardy" warnings, highlighting the dire conditions that can arise when profit motives overshadow patient care. These incidents underscore the urgent need for regulatory oversight in the healthcare sector, particularly regarding mergers and acquisitions.

The Fight for Carney Hospital

As the clock ticks down to the closure date, community leaders are rallying to save Carney Hospital. Bill Walczak, a former president of Carney, argues that the hospital is essential for the 250,000 residents it serves. He emphasizes that the state has the power to intervene and preserve vital healthcare services. "If the legislature and governor wanted to put together a package today to preserve the essential services of Carney Hospital, they could do it," he stated.

Governor Healey has taken steps to seize control of another Steward facility, St. Elizabeth’s Medical Center, using eminent domain. However, the fate of Carney remains uncertain. Community advocates are urging the state to consider similar measures to ensure that Dorchester residents have access to emergency care.

Conclusion: A Call to Action

The impending closure of Carney Hospital serves as a stark reminder of the fragility of healthcare access in underserved communities. As Gittens and her neighbors grapple with the potential loss of their local hospital, the broader implications of private equity in healthcare demand urgent attention. Lawmakers must prioritize patient care over corporate profits and establish safeguards to protect essential services.

The fight for Carney Hospital is not just about one facility; it is a battle for the health and well-being of an entire community. As Gittens poignantly stated, "Carney is integral not only to my family – but the broader community." The time for action is now, and the voices of those who depend on Carney must be heard.

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