Healthcare Crisis Highlights Dangers of Private Equity in Industry Consolidation.

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

Governor Maura Healey has placed the blame on Steward Health Care’s management for the financial crisis that the company is currently facing. This crisis has raised concerns about the lack of transparency from companies like Steward, which owns nine hospitals in Massachusetts.

Massachusetts lawmakers are currently holding a hearing to address private equity ownership in the healthcare sector, particularly in light of this crisis. Lawmakers heard from a government watchdog warning about the dangers of industry consolidation, for-profit ownership, and private equity investment in healthcare during the hearing.

The Health Policy Commission Executive Director David Seltz presented data showing a significant increase in the involvement of private equity 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.

If Steward Health Care decides to pull out of the state, it would significantly reduce access to healthcare for hundreds of thousands of people. The need for transparency and accountability in healthcare practices is becoming increasingly urgent as the industry continues to evolve.

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