Unique Challenges for Health Care Access and Reform: Steward Health Care’s Private Equity Structure and Financing Puzzle

In recent discussions about health care access, affordability, and staffing in southeastern Massachusetts, Health and Human Services Secretary Kate Walsh highlighted the challenges posed by the property and leasing structures of Steward Health Care hospitals. The for-profit system, which operates under private equity backing, has complicated efforts to find a buyer due to its unique financing setup.

As a seasoned health care executive with experience at top hospitals and research institutions, Walsh described the situation at Steward as unprecedented in her career. The system had sold its physical properties in the past and now leases them back, a move that she believes has made the hospitals less appealing to potential acquirers. Despite the complexities involved, Walsh emphasized the importance of finding a solution that prioritizes patient care, family support, and health care reform in eastern Massachusetts.

Walsh’s team is focused on exploring creative solutions to ensure that patients receive the care they need and that the broader health care system in the region can be reformed. With a commitment to addressing the challenges presented by the current situation and working towards a resolution that benefits all stakeholders involved, Walsh remains dedicated to finding a way forward for Steward Health Care.