Massachusetts establishes the Steward Bankruptcy Response System

On Friday, the Massachusetts Executive Office of Health and Human Services launched an incident command system designed to better coordinate healthcare response in the wake of Steward Health Care files Chapter 11 bankruptcyand be the primary point of communication with healthcare organizations, first responders and others in the region.

WHY IT MATTERS

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

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

Massachusetts Health and Human Services Secretary Kate Walsh told state lawmakers last week that government agencies were preparing to deal with a pending bankruptcy filing from Steward, according to Boston-based WBUR.

Under the terms of the filing, Steward said it will keep its operations running.

State officials said hospitals remain open and providing care WBURbut DPH will monitor the facilities for the necessary supplies and staffing to ensure safe and effective care can be delivered.

THE BIG TREND

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

Steward blamed declining government reimbursements as the main factor and rising labor, operations and material costs for the precarious financial situation.

ON THE RECORD

“This week, the Massachusetts Department of Public Health activated its emergency operations plan as part of our ongoing commitment to ensure patient safety, protect access to care and preserve jobs,” Walsh said in a statement. “This next step is part of our ongoing response to Steward Health Care’s financial challenges.”

Andrea Fox is editor-in-chief of Healthcare IT News.
Email: afox@himss.org

Healthcare IT News is a HIMSS Media publication.

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