Steward Health Files For Bankruptcy: Mass. Scrambles To Deal With Impact
Steward Health Care's community hospitals were once feted for their benefits to Boston's health system, The Boston Globe says. Now the state has had to activate an emergency operations plan to work with Steward-owned hospitals.
The Boston Globe:
Steward Bankruptcy Filing Leaves Its Eight Massachusetts Hospitals In Limbo
Steward Health Care, which once trumpeted its community hospital system as a low-cost alternative to Boston’s medical goliaths before expanding nationally and falling into a deep financial crisis, filed for bankruptcy protection early Monday morning. Under Chapter 11 of the US bankruptcy code, Steward will become a “debtor in possession,” continuing to operate its 32 hospitals in eight states while it seeks to restructure its debt under court supervision. (Weisman and Bartlett, 5/6)
CBS News:
Massachusetts Starts Emergency Operations Plan To Work With Steward-Owned Hospitals
Massachusetts has launched an emergency operations plan in response to the financial problems with the Steward health system that affects several hospitals in the state. The hospital group owns nine hospitals in Massachusetts and is millions of dollars in debt. Since January, the Department of Public Health has had monitors on the hospitals. (Cole, 5/3)
In other health care industry news —
Bloomberg:
Rite Aid Closes A Quarter Of Stores As It Navigates Bankruptcy
Rite Aid Corp. is working to complete a deal with lenders to exit bankruptcy. But even with a rescue deal in hand, the ailing pharmacy chain is poised to to be significantly smaller. Since filing Chapter 11 in October, Rite Aid has said it will close more than 520 locations, according to a Bloomberg News analysis of court records. The closures, which could increase, represent nearly a quarter of the 2,111 stores Rite Aid operated when it entered bankruptcy. (Randles, 5/3)
Modern Healthcare:
Cue Health To Lay Off 49% Of Staff In Cost-Saving Strategy
Biotech company Cue Health plans to cut 230 employees, or 49% of its staff, the organization said in a Securities and Exchange Commission filing May 1, marking its fifth round of layoffs since January 2023. The staff reduction is part of the company's latest cost-savings plan to allow it to focus more on other priorities, specifically an at-home digital testing program for several health conditions, a spokesperson said Friday. (DeSilva, 5/3)
The CT Mirror:
Yale New Haven Health Moves To Sue Prospect To Get Out Of Sale
Yale New Haven Health is asking the state Superior Court to be let out of its contract with Prospect Medical Holdings for the purchase of Manchester Memorial, Rockville General and Waterbury hospitals. (Carlesso, 5/3)
AP:
Aetna Agrees To Settle Lawsuit Over Fertility Coverage For LGBTQ+ Customers
Aetna has agreed to settle a lawsuit that accused the health insurer of discriminating against LGBTQ+ customers in need of fertility treatment. Under the deal announced Friday, the insurer will make coverage of artificial insemination standard for all customers nationally and work to ensure that patients have equal access to more expensive in-vitro fertilization procedures, according to the National Women’s Law Center, which represented plaintiffs in the case. (Murphy, 5/3)
Modern Healthcare:
Change Healthcare Update: Dated Tech Slows System Restoration
More than two months after being hit with a cyberattack, Change Healthcare is still bringing its systems back online. Restoring them hasn't been an easy task. ... The company processes 15 billion transactions a year and touches one-third of patient records. The scope of Change Healthcare, coupled with its legacy technology, has complicated restoration efforts. (Berryman, 5/3)
Also —
Axios:
Medicare Advantage To End Hospice Experiment Early Amid Struggles
As Medicare Advantage grows bigger and bigger, there's one area the industry and regulators haven't figured out how to make work yet: hospice. The end-of-life care option is the only Medicare service that can't be offered in the private-run alternative, which now covers over half of enrollees. (Goldman, 5/6)
Houston Chronicle:
Peter Hotez Named Among Most Influential Public Health Figures By Time
Time magazine has named Peter Hotez, the co-director of the Texas Children’s Hospital Center for Vaccine Development, on its list of the most influential figures in global health. Hotez and hospital co-director Maria Elena Bottazzi were nominated for the Nobel Peace Prize in 2022 for their work on vaccine development efforts. The professor and dean of the National School of Tropical Medicine at Baylor College of Medicine is one of 100 people placed on the inaugural 2024 Time100 Health. (Ikramuddin, 5/3)
