Photo: WBZ NewsRadio
BOSTON (State House News Service) — The state agency focused on health care information and analysis did not adequately monitor hospitals experiencing financial distress and failed to fine facilities and health systems for defying data reporting requirements, according to a new report from Auditor Diana DiZoglio's office.
DiZoglio's examination of the Center for Health Information and Analysis, which also criticized the lack of information on the agency's website and its accessibility, spanned July 1, 2021 through June 30, 2023.
The period didn't capture the Steward Health Care bankruptcy crisis and the report points to CHIA's limited enforcement authority, which may be addressed in a bill (H 5159) awaiting Gov. Maura Healey's signature.
The audit, released on Friday, claims CHIA did not identify or examine acute care hospitals "considered to be in financial distress or at risk of closing or discontinuing essential services." CHIA also didn't produce financial reports on the eight Steward Health Care hospitals operating at the time, the audit says.
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"CHIA limited its own ability to identify and address concerns regarding hospitals at risk of closing," the report says. "This may have prevented policymakers from becoming aware of these issues and taking actions to prevent or soften the impacts of these issues. Overall, CHIA appears to have overlooked the risk of hospital closures in the Commonwealth."
In its response, CHIA said it's "consistently collected, analyzed and reported data" on hospitals and health systems -- aside from Steward. CHIA pointed out it sued Steward for noncompliance and the Superior Court determined the company must turn over financial information, though the matter remains hung up in court.
The audit contends CHIA did not level more than $1.6 million in fines against hospitals that failed to submit information on time, including Steward facilities and two hospitals owned by Heywood Healthcare, which filed for bankruptcy in 2023.
CHIA called that fine estimate "misguided," saying it fails to consider the litigation with Steward, as well as the agency's discretion to issue fines and give "reasonable extensions" to submit information. CHIA also argued it cannot require hospitals to conduct audits and said Heywood Healthcare lacked financial audits to hand over.
The bill on Healey's desk expands CHIA's oversight and enforcement authority, in part by subjecting private equity investors and real estate investment trusts to financial reporting requirements. Fines for violations would soar from $1,000 to $25,000 weekly, with the bill eliminating the annual cap of $50,000.
Written by Alison Kuznitz/SHNS