BOSTON (WBZ NewsRadio) — U.S. Senators Ed Markey, D-M.A., and Elizabeth Warren, D-M.A., spoke at a Senate Health, Education, Labor, and Pensions Subcommittee hearing at the Massachusetts State House on Wednesday. They both heavily critiqued the practices of Steward Health Care for causing hospital crises across the state.
The hearing came amid Steward Health Care’s financial crisis, which has been in the political spotlight in recent months as the state government evaluated the company’s records.
Read More: Hospitals In Mass. Are 'Really Struggling,' Says House Health Care Chair
Markey, who is a member of the subcommittee, accused the private health care system, which operates nine facilities in Massachusetts, for prioritizing their own profits over the functionality of their hospitals and their staff.
“Steward [Health Care] and Cerberus [Capital Management] made millions, rejoiced in their profits, and sailed away from their responsibility to their workers and patients on their luxury yachts. Meanwhile, their hospitals drowned.”
Warren shared similar sentiments about Steward’s management. “Investors looted the hospital and got rich, while nurses, doctors, and other workers tried hard to provide care, supplies ran out, and contractors walked away because they weren’t getting paid."
Markey went on to condemn healthcare’s private equity system in general. “Steward Health Care, Cerberus, and Medical Properties Trust, and greedy corporate executives like them, are failing in their responsibility to patients, providers and communities.”
Warren said in a press release that “private equity firm Cerberus Capital Management bought the [Steward] health care system, sold it for parts to Medical Properties Trust, and walked away with hundreds of millions of dollars, leaving the hospitals, their patients, and their doctors out to dry.”
Read More: Steward Health Care's Carney Hospital Faces Financial Struggles, Closure
During the hearing, the two Massachusetts senators faced an empty chair, where Steward’s CEO Dr. Ralph de la Torre was invited to testify, but declined to do so.
“While we hold this hearing, Dr. de la Torre is hiding out. Shame on Dr. de la Torre. He owes the residents of Massachusetts an explanation for his part in looting Steward hospitals,” said Warren.
“Cerberus and [Dr.] de la Torre stripped the hospitals of their assets and staff and forced these hospitals to pay rent to medical properties trust … all while they extracted billions from Massachusetts institutions to expand globally,” accused Markey.
Read More: Mass. Politicians Weigh In On Steward-Optum Deal, Citing Antitrust Concerns
Markey clearly shared his views on the situation. “What they did was immoral, and we need to make sure that it becomes illegal.”
Warren also said that what Steward was allowed to do should be tackled by the law. “We need accountability, and law enforcement authorities should carefully review every aspect of this fiasco. We also need to change the law.”
Warren’s “Wall Street Looting” Act, along with Markey’s “Health Over Wealth” Act both aim to crackdown on private equity in healthcare.
Markey said that he wants to prevent “Steward’s failures from becoming America’s healthcare standard” through his legislation.
A spokesperson for Steward Health Care responded to WBZ NewsRadio’s request for comment, saying they did not have a statement at this time.
WBZ NewsRadio's Madison Rogers (@MadisonWBZ) reports.
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