The Healthcare Crisis: Why Private Equity Ownership Matters in Massachusetts

Steward Health Care to Participate in Hearing at Massachusetts State House on Monday – NBC Boston

The Healthcare Crisis: Why Private Equity Ownership Matters in Massachusetts

Massachusetts lawmakers are currently conducting a hearing to address the issue of private equity ownership in the healthcare sector. This comes as Steward Health Care, which owns nine hospitals in the state, faces a financial crisis that has raised concerns about the lack of transparency from companies like Steward.

If Steward decides to pull out of the state, it would significantly reduce access to healthcare for hundreds of thousands of people. Governor Maura Healey has placed blame on Steward’s management for this situation. The hearing heard testimony from a government watchdog warning about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare.

During the hearing, Health Policy Commission Executive Director David Seltz presented data showing a significant increase in private equity involvement in healthcare transactions in Massachusetts over recent years. The percentage of transactions involving private equity interests has more than doubled, raising concerns about the future of healthcare in the state. Seltz emphasized the need for urgent action to address these trends before they escalate further.

The data presented by Seltz underscores growing concerns about the impact of private equity ownership on healthcare practices. The need for transparency and accountability in healthcare practices is becoming increasingly urgent as the industry continues to evolve.

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