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Massachusetts sets up Steward bankruptcy response system

On Friday, the Massachusetts Executive Office of Health and Human Services launched an incident-command system designed to better coordinate care response in the wake of Steward Health Care filing Chapter 11 bankruptcy, and be the primary point of communication with healthcare organizations, first responders and others in the region.

WHY IT MATTERS

Dr. Gregg Meyer, senior vice president for quality and safety at Massachusetts General Hospital and Massachusetts General Physicians Organization, will lead the command center, which will coordinate responses from state agencies, hospitals, community health centers, community service organizations and others.

Steward, which has 33 hospitals in nine states, including eight in Massachusetts, filed voluntary petitions for relief in the U.S. Bankruptcy Court for the Southern District of Texas. 

Massachusetts Secretary of Health and Human Services Kate Walsh told state legislators this past week that state agencies were preparing for a pending Steward bankruptcy filing, according to Boston-based WBUR. 

Under the terms of the filing, Steward said it will keep its operations running.

State officials said that the hospitals remain open and are providing care, according to WBUR, but DPH will monitor the facilities for necessary supplies and staffing to ensure that safe and effective care can be delivered. 

THE LARGER TREND

In March, Steward Health Care in Massachusetts agreed to sell its physician group to Optum Care.

Steward blamed decreasing government reimbursement rates as a primary factor and rising labor, operations and materials costs for its precarious financial situation.

ON THE RECORD

“This week, the Massachusetts Department of Public Health activated its Emergency Operation Plan as part of our ongoing commitment to ensure patient safety, protect access to care and preserve jobs,” Walsh said in a statement. “This next step is part of our continued response to Steward Health Care’s financial challenges.”

Andrea Fox is senior editor of Healthcare IT News.
Email: afox@himss.org

Healthcare IT News is a HIMSS Media publication.

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