Health

Massachusetts establishes a Steward bankruptcy response system



On Friday, the Massachusetts Executive Office of Health and Human Services launched an incident command system designed to better coordinate care response after Steward Health Care filed for Chapter 1 bankruptcy. 11 and is the primary point of contact with healthcare organizations, first responders and others in the area.

WHY IS IT IMPORTANT?

Dr. Gregg Meyer, senior vice president of quality and safety at Massachusetts General Hospital and the Massachusetts General Practitioners Organization, will lead the command center, which will coordinate responses from agencies states, hospitals, community health centers, community service organizations, and others.

Steward, which has 33 hospitals in nine states, including eight in Massachusetts, voluntarily filed for relief with the U.S. Bankruptcy Court for the Southern District of Texas.

Massachusetts Department of Health and Human Services Secretary Kate Walsh told state lawmakers this past week that state agencies are preparing for the pending Steward bankruptcy filing, according to WBUR-based based in Boston.

Under the terms of the filing, Steward said it will continue to operate.

State officials said hospitals remain open and are providing care, according to WBUR, but DPH will monitor facilities to provide the necessary supplies and staffing to ensure it can provide provide safe and effective care.

BIGGER TREND

In March, Steward Health Care in Massachusetts agreed to sell its physician group to Optum Care.

Steward blamed falling government reimbursement rates as the primary cause and rising labor, operations and materials costs for the company’s precarious financial situation.

ON PROFILE

“This week, the Massachusetts Department of Public Health activated our Emergency Operations Plan as part of our ongoing commitment to ensure patient safety, protect the ability to access to care and maintain employment”. “This next step is part of our ongoing response to Steward Health Care’s financial challenges.”

Andrea Fox is a senior editor at Healthcare IT News.
Email: [email protected]

Healthcare IT News is a publication of HIMSS Media.

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