Connect with us

Massachusetts

Massachusetts congressional delegation demands answers from Steward’s private equity founders – The Boston Globe

Published

on

Massachusetts congressional delegation demands answers from Steward’s private equity founders – The Boston Globe


“We have long been concerned about the nefarious role of private equity in our economy,” the delegates said in the letter. “The dire threat of Steward’s collapse appears to be a textbook example of the grave risks posed by a private equity takeover of the health care system.”

A spokesperson for Cerberus was not immediately available for comment.

Previously, Steward has blamed its financial challenges in part on the relatively low rates it receives for services to Medicaid patients. And even for patients with more lucrative commercial insurance, Steward has said, its hospitals still are paid less than others in the market.

The letter comes amid increasing struggles for Steward Health Care, which is facing numerous lawsuits over alleged nonpayment to vendors, closing hospitals in other states, and having difficulty making rent payments. As reported by the Boston Globe, executives have been in talks with Massachusetts state officials over possible solutions to their financial crisis, which have included options ranging from selling or closing some hospitals or services, to at times requests for state financial support.

Advertisement

The Dallas-based health system, which counts nine hospitals in Massachusetts and more than 30 nationally, has so far announced the closure of one facility, New England Sinai Hospital, a rehabilitation hospital in Stoughton. Additional closures have not been announced, and the company has insisted that none are imminent.

Still, financial challenges have created problems at facilities that remain. Supply shortages have been so pervasive that Mass General Brigham removed some of its doctors for a time from performing surgeries at some Steward hospitals. Since late January, the Department of Public Health has been doing daily monitoring at many Steward hospitals to check on staffing and service availability, monitoring they increased this week.

The note to Cerberus was signed by the entire all-Democratic, delegation, including US Senators Elizabeth Warren and Edward Markey, and US Representatives Richard Neal, James McGovern, Stephen Lynch, William Keating, Katherine Clark, Seth Moulton, Lori Trahan, Ayanna Pressley, and Jake Auchincloss. According to the delegation, the current financial precarity was created — if not magnified — by Cerberus’s actions.

Warren’s office in particular has targeted private equity firms in legislation she’s filed, including the Stop Wall Street Looting Act, which among other things would have made private equity firms jointly liable for all the debt incurred by the acquired entity. Warren has filed such legislation in 2018 and 2021, though it did not pass.

Named after the mythical three-headed dog guarding the gates of the underworld, Cebrerus became involved with Steward at its founding. As detailed by the letter, Cerberus invested $246 million through the purchase of Caritas Cristi Health Care in 2010, rechristened the system as Steward, and left CEO Dr. Ralph de la Torre in charge.

Advertisement

Six years later, Cerberus-owned Steward signed a $1.25 billion deal with Medical Properties Trust, in which Steward sold its hospital properties to MPT, locking Steward into a multiyear, multimillion dollar lease payment. The deal returned Cerberus’s initial investment, but the private equity firm still retained a controlling stake in the company.

In May 2020, Cerberus exited entirely, transferring its ownership stake to a group of Steward doctors in exchange for a note that would provide regular interest payments. Steward borrowed $335 million from MPT in January 2021 to buy the note.

“Over the six-year period, Steward took on over a billion dollars in liabilities — while Cerberus executives profited handsomely,” the letter states. “The net result of these transactions appears to be an unfolding tragedy. Cerberus and its private equity executives received $800 million in profits, while thousands of Massachusetts health care workers’ jobs are at risk and 10 communities in the Commonwealth face the potential closure of hospitals that are debt-ridden, unable to pay their bills, and teetering on the financial brink.”

The letter comes after the delegation sent a similar missive to de la Torre in late January, asking for a seat at the table as Steward discussed its plans with state officials, and wanting a briefing on the health system’s financial position and the status of its facilities in Massachusetts.

Lynch said his staff and others met with Steward executives and were informed that Steward’s intent was to exit the Massachusetts health market. Of the remaining eight hospitals that will exist after the rehab hospital’s closure, four — Nashoba Valley Medical Center, St. Elizabeth’s Medical Center, Holy Family Hospital, and Norwood Hospital — had to be transferred urgently.

Advertisement

Norwood Hospital has been temporarily closed since 2020 due to catastrophic flooding.

Lynch said at the root of the financial struggle was the for-profit structure of Steward.

“They have two missions — they have to satisfy the obligations they have to their private equity firm and shareholders to generate a profit,” he said in an interview. “And then they got another mission, to provide high quality health care. Sometimes those two missions are at odds. There is friction between them. That’s at the root of this. It’s their business model.”


Jessica Bartlett can be reached at jessica.bartlett@globe.com. Follow her @ByJessBartlett.

Advertisement





Source link

Massachusetts

Meteor Lands In Cape Cod + Bus Crash Kills 5 From MA + Wind Storm Knocks Out Power To Thousands: MA Weekend

Published

on

Meteor Lands In Cape Cod + Bus Crash Kills 5 From MA + Wind Storm Knocks Out Power To Thousands: MA Weekend


MASSACHUSETTS — Residents throughout New England were simultaneously startled as a meteor that landed in Cape Cod caused a sonic boom this past weekend.

Meanwhile, a bus driver is facing charges after five Massachusetts residents died in a crash on a highway in Virginia.

Plus, another State Trooper was caught handling a wrong-way driver situation on Route 1.

Mysterious Boom Heard Across MA Was An Exploding Meteor, Experts Say

Advertisement

The noises were heard around 2:11 p.m. Saturday, with people describing a sudden bang that rattled windows and even shook some homes. The American Meteor Society said that the booms heard were actually caused by a meteor about three feet wide entering the atmosphere near the border of Massachusetts and New Hampshire.

Residents as far as Ipswich and Johnston, Rhode Island, reported hearing and feeling the sensations. Meteorologist Nick Stewart shared satellite images from the National Oceanic and Atmospheric Administration, showing where the meteor entered the atmosphere and combusted while traveling at 75,000 miles per hour above the ocean.

Bus Driver Charged After MA Family Of 4, Worcester Woman Killed In VA Crash

Jing S. Dong, of Staten Island, New York, now faces two counts of involuntary manslaughter in connection with the collision, which occurred around 2:35 a.m. Friday on southbound I-95 near Quantico. Among those killed were a 45-year-old man, a 44-year-old woman, a 13-year-old girl and a 7-year-old boy, all from Greenfield, Massachusetts. All were in the Acura, which police said caught fire after the collisions. Police on Saturday evening identified the fifth person killed as Priscilla R. Mafalda, 25, of Worcester, Massachusetts, who was riding in the Suburban struck by the bus.

In total, about 44 people were transported to area hospitals, including three with critical injuries.

Advertisement

State Trooper Hospitalized After Route 1 Wrong-Way Crash In Peabody

State Police said the trooper was hospitalized with non-life-threatening injuries after police acted in coordination to protect traffic and stop the driver, who was traveling southbound on Route 1 North in Peabody. The incident occurred not far from the location on Route 1 where State Trooper Kevin Trainor was killed when his cruiser was hit head-on in a wrong-way crash in Lynnfield last month. The driver in Sunday’s crash was also hospitalized and charged with operating under the influence of liquor, negligent operation of a motor vehicle, and driving the wrong way on a state highway.

Rapidly Expanding Grocery Chain Has Big Plans For MA

Sprouts Farmers Market is slated to launch up to 40 locations throughout the region in the coming years. Construction has begun for the first Massachusetts spot in Weymouth, which has an opening date of 2028. The Phoenix-based organic grocery chain has more than 480 stores in 25 states.

Saturday’s Meteorite Was ‘Fishy Squisher’ And NASA Knows Where To Find It In Cape Cod Bay

Advertisement

Data from NASA suggest fragments of the meteorite lie in waters from the middle of the bay to about 10 miles northeast of the town of Sandwich. The agency said late Saturday it picked up radar signatures of the fragments from four radar sites, and termed the strike a “fishy squisher.” The meteorite entered Earth’s atmosphere about 40 miles above the Bay State and southern New Hampshire, creating the sonic boom. Water in the bombarded portion of Cape Cod Bay is about 100 feet deep.

35K Without Power As Winter-Like Storm Pummels MA With 55+ MPH Winds

Massachusetts residents throughout the North Shore were without power on Saturday morning as a winter-like storm tore a path of tree damage, downpours, and fierce winds throughout New England. Widespread tree damage was reported across the state, with the Massachusetts Emergency Management Agency reporting 34,228 customers without power as of 11:20 a.m. Wind speeds reached a high of 55 miles per hour. Temperatures dropped into the 40s with wind chills in the 30s as the storm arrived across the Bay State. The unsettled weather will continue through Monday and Tuesday before a warming trend takes hold later in the week.

See Also:

Cape Shoreline Named Among The Nation’s 10 Best, According To ‘Dr. Beach’

Advertisement





Source link

Continue Reading

Massachusetts

Markey wins Mass. Dems’ endorsement as Moulton clears ballot hurdle in Senate race

Published

on

Markey wins Mass. Dems’ endorsement as Moulton clears ballot hurdle in Senate race


U.S. Rep. Seth Moulton, a moderate Massachusetts Democrat, secured enough delegate support Saturday to appear on the state’s primary ballot as he challenges incumbent U.S. Sen. Ed Markey in this year’s Senate race.

Yet even though Moulton cleared a key hurdle to continue his Senate bid, it was Markey who won the party’s endorsement after winning more than 50% of the delegation’s support.

“You have a choice, you have to decide what the future looks like and what you’re going to demand,” Markey said Saturday in front of more than 4,000 delegates.

Markey won nearly 73% of the delegates’ support, while Moulton won nearly 27% of the vote. Massachusetts Democratic Party rules require statewide candidates to get at least 15% of delegate support to appear on primary ballots.

Advertisement

In heavily Democratic Massachusetts, the Senate primary contest is one of the most closely watched in the country as Moulton, 47, has centered his campaign on changing the status quo and demanding a generational shift in leadership.

If reelected, Markey would be 80 before his third six-year term would begin. While Markey has touted his stamina and embrace of progressive policies, questions about age have continued to swirl around Democratic candidates as they fight to take back control of Congress.

Incumbent Sen. Ed Markey is leading Rep. Seth Moulton, but if Rep. Ayanna Pressley were to enter the Democratic primary, it would change the picture, according to a new poll from Suffolk University and The Boston Globe.

In his nomination speech, Moulton argued that the Democratic Party needed more than “incremental change” and needed to start anew.

“It’s time for the generation that grew up with the internet, and will have to live for decades with AI, to lead our way through it,” Moulton said.

Advertisement

Moulton only addressed his opponent briefly during his nomination speech, giving a passing nod on not waiting another six years for generational change and later calling on Markey to participate in multiple debates before the September primary. Currently, the two candidates have agreed to participate in one debate later this summer.

Markey, instead, took a more critical approach by attacking Moulton’s previous comments about transgender kids and accepting corporate PAC money.

“Massachusetts deserves better than a senator who scapegoats trans kids,” Markey said to loud cheers.

In 2024, Moulton caught flak from some members of his party for saying he didn’t want his daughters playing in sports against transgender girls. Critics said Moulton echoed Trump’s talking points against allowing transgender athletes in girls’ and women’s sports.

Moulton has since said his intent with that statement “was to point out that, as a party, we need to be willing to have difficult conversations.”

Advertisement

Moulton, who enlisted in the Marines after the Sept. 11, 2001, attacks and served four tours of duty in Iraq, was first elected to the U.S. House of Representatives in 2014. He briefly launched a 2020 presidential campaign, but he dropped that bid after a few months.

Markey served as a Massachusetts congressman for nearly 40 years before winning the Senate seat in 2013. He fended off a challenge in 2020 from Rep. Joe Kennedy III in the Senate primary by turning to his progressive allies to overcome a challenge from a younger rival from America’s most famous political family.

The Massachusetts primary is Sept. 1.



Source link

Advertisement
Continue Reading

Massachusetts

Randolph woman wins $1M lottery prize, plans to use winnings for home improvements

Published

on

Randolph woman wins M lottery prize, plans to use winnings for home improvements


RANDOLPH, Mass. (WWLP) – A Randolph resident has won a $1 million prize through the final drawing of the Massachusetts State Lottery “$4,000,000 Monopoly Doubler” instant ticket game.

Brenda Mellor of Randolph claimed the game’s tenth and final $1 million prize.

Brenda Mellor of Randolph. (Courtesy of the Massachusetts State Lottery Commission)

She selected the cash option and received a one-time payment of $650,000 before taxes. Mellor said she plans to use the winnings to pay for home improvements, including renovations to her roof and pool.

The winning ticket was purchased at The Variety Store at 2 Mazzeo Drive in Randolph. The retailer will receive a $10,000 bonus for selling the ticket.

Advertisement

Local News Headlines