Steward Health Care, the owner and operator of 10 medical centers in Massachusetts, has expressed concerns about the financial challenges they are facing, which could potentially impact the future operations of their facilities.
A number of hospitals are part of Steward’s network, including New England Sinai Hospital in Stoughton, Morton Hospital in Taunton, Nashoba Valley Medical Center in Ayer, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Haverhill and Methuen, Norwood Hospital, Saint Anne’s Hospital in Fall River, and St. Elizabeth’s Medical Center in Brighton.
According to Steward, their facilities, along with other community hospitals, are grappling with financial challenges resulting from the pandemic. The hospital group has faced challenges due to a disparity in reimbursement rates between commercial health insurance and federal plans, with the latter falling significantly behind the former, according to their statement.
Steward’s payor-mix, reflecting the insurance types of patients, exceeds 70% with a majority being Medicare and Medicaid. According to Steward, community hospitals across the state are being impacted by this reimbursement gap. According to Definitive Healthcare, the payor-mix in Massachusetts hospitals is approximately 38% Medicare and Medicaid.
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In a statement, Steward highlighted the growing disparity in reimbursement between the state’s community hospitals and larger academic medical centers over the past decade. “The gap has shown a consistent increase, putting many community hospitals, including Steward hospitals in Massachusetts, at risk of financial losses that could impact their ability to provide services.”
A medical group has announced that they are collaborating with Governor Maura Healey and Attorney General Andrea Campbell to tackle the issue of reimbursement disparities and ensure that their facilities remain accessible to communities.
A statement from Steward highlights their commitment to bolstering liquidity, revitalizing their balance sheet, and implementing the necessary measures to remain a crucial healthcare services provider for patients, communities, physicians, and employees.
In a surprising turn of events, Compass Medical, a prominent chain of care centers in South Shore, abruptly closed its doors in 2023. This unexpected closure has left a staggering 70,000 patients in need of compensation for the disruption in their healthcare services.
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