Deadline passes without Steward Health Care providing financial statements to state

Massachusetts Governor Maura Healey says Steward Health Care failed to hand over necessary financial statements by Friday’s imposed deadline.

Earlier Friday, Governor Healey voiced her displeasure with the healthcare group currently under investigation for being $50 million in debt.

“This is a problem Steward created. Steward’s management, Steward’s leadership team created. We are about protecting patients and protecting the 16,000 jobs in the Steward system. And protecting the health care system,” Healey said.

Gov. Healey’s office said Steward Health Care admitted Thursday the company does not have the audited financial statements the state requested for review.

“The financial information that Steward provided this week continues to be incomplete and insufficient. What Steward must do from this point forward is clear – complete an orderly transition out of Massachusetts,” a spokesperson for Gov. Healey said in a statement.

Steward said it has worked since Nov. 2023 to comply with every request from the Massachusetts Attorney General’s Office and the EOHHS. The company said it has provided tens of thousands of documents to the state.

“Steward has tried to be transparent, compliant and cooperative over the years in providing a significant amount of detailed and relevant financial documentation to various state agencies and regulatory bodies and moving forward it commits to do even better,” the company said in a statement. “It has supplied all of the audited financial statements that have been prepared. Steward has supplied draft statements with footnotes for years where the audit remains incomplete.”

Steward Health Care says it does not have the money to keep its hospitals and wants out of the Massachusetts Health Care Market. Healey says her team is committed to finding “more responsible” ownership.

Steward has seven licensed hospitals in the state. They include Good Samaritan in Brockton and St. Elizabeth’s in Brighton. The hospital has a staff of 16,000 employees.

To make sure the state’s healthcare system does not implode, lawmakers and healthcare leaders say they need to understand Steward’s financial and complicated debt structure to come up with a plan.

“You and your team have not been forthcoming, truthful, or responsive about what’s happening with your financial status, operating plans, and contingency strategies, Governor Healey said in a letter to the head of Steward. “Navigating this acute crisis, which is of your making, without complete transparency and real-time information, harms our ability to protect patients, our workforce, and our state,” Healey added.

In January said Steward owed it about $50 million in unpaid rent -- appeared to open the door to steering more money to its tenant.

Steward Health Care’s landlord said on Wednesday that Steward hospitals have drawn significant interest from other potential operators.

Congressman Stephen Lynch says federal lawmakers may get involved to get Steward to turn over the information.

This is a developing story. Check back for updates as more information becomes available.

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