Steward Health Care, a for-profit hospital chain owned by Cerberus Capital Management, has declared bankruptcy amidst accusations of financial mismanagement. The CEO, Dr. Ralph de la Torre, accrued over $100 million in compensation and invested in a $40 million yacht. More than 2,200 employees in Massachusetts and Ohio face layoffs as two Massachusetts hospitals prepare for closure on August 31. The situation has sparked a Senate investigation into the governance and financial practices of Steward Health Care, raising broader questions about private equity’s role in the healthcare industry. Regulatory lapses have led to critical medical supply shortages and tragic patient outcomes in facilities owned by Steward across multiple states. Efforts are underway to manage the fallout, including a state emergency plan and bankruptcy court approvals. However, patients and communities fear the loss of essential medical services. The Massachusetts government has proposed using eminent domain to acquire and reassign another Steward hospital to remain operational.
Healthcare, Private Equity,United States, Malta
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