Impacts of the Steward Bankruptcy Adding to Costs

Healthcare costs have continued to escalate dramatically, outstripping median household income and the States economic benchmarks. Copays and deductibles accessibility have increased between 7% and 10%.  Dramatic pricing variations also persist across the state. Inpatient hospital stay costs rose 30% from 2019 through recent years, and identical routine services can cost up to five times more depending on the hospital facility. This makes no sense.

https://masshpc.gov/news/press-release/hpc-calls-recommitment-health-care-cost-growth-benchmark-and-urgent-action-tame

The Joint Committee on Healthcare Financing (JCHCF) has failed over many years to rein in costs or expand access to healthcare. Many struggle to find a primary care doctor. Meanwhile the House and Senate primary care bills so important to improving access to care are now being reconciled in a closed door 6 member conference committee.

Meanwhile costs are going up, in part due to the Steward Healthcare bankruptcy. Steward was owned by private equity and a real estate investment trust. The bankruptcy resulted in hospital closures, gross mismanagement resulting in patient harm including patient deaths, and a $700 million taxpayer bailout. For years the state regulators and the JCHCF failure to discipline Steward despite repeated refusal to make financial records available. Yet, not action was taken until it was too late.

Eleven months after Steward's bankruptcy the Legislature passed H.5159 An Act Enhancing the Market Review Process designed to close loopholes and close the huge gaps in oversight of the healthcare market regulatory process. This new legislation was a raw admission of the complete failure of the previous regulations including toothless penalties, fragmented authority, political influence and legal stonewalling. This is closing the barn door after all the horses have galloped off. And still no accountability for the Steward executives who are literally guilty of causing patient deaths. 

If we had implemented a Medicare for All system as we should have years ago this tragedy would not have happened. We cannot keep kicking the can down the road.