The loss of critical care was devastating.
The hospital chain agreed to sell its facilities to MPT and then to lease them back at exorbitant rates.
Upon its bankruptcy, Steward still owed MPT a stunning $6.6 billion.
(In a statement to Business Insider, Cerberus said Steward’s hospitals thrived under its ownership.
MPT did not respond to a request for comment.)
But even under new ownership, it doesn’t look as though much will change.
Even more disturbing, the fate of Steward’s facilities reveals a deeper flaw inAmerica’s healthcare infrastructure.
AsAmerica’s dying hospitalsstruggle to survive, the treatment being prescribed is often more of what’s killing them.
Before founding AHS, Sarian served for eight years as president of another hospital company, Prime Healthcare Services.
But the Justice Department has accused the system of a different motivation: inflating its profit through fraud.
And as with Steward, critics say the profits have come at the expense of patients.
Lawsuits from vendors began to pile up almost immediately, along with reports from employees ofshort staffing.
Before long, the company closed one of its hospitals and shuttered one of its emergency rooms.
AHS also siphoned money out of Vista Medical Center East, another hospital it operates.
(AHS did not respond to requests for comment.)
Given the players involved, he warns, the cycle of collapse is almost certain to repeat itself.
Other companies that bought parts of Steward also have ties to MPT.
Insight denied the claims, and a settlement is pending.
They can’t."
As a result, underserved communities continue to lose access tovital healthcare.
Regulators like the Securities and Exchange Commission might be looking into MPT’s deals on behalf of investors.
“Meanwhile, they are turning a blind eye to the scam repeating itself.”
Without additional oversight, patient advocates warn, the looting of America’s hospitals will continue unabated.
It’s possible the SEC is stepping in to protect investors and uphold the rules for public markets.
But who is going to hold these entities accountable to patients?
I don’t see that happening right now."
Bethany McLeanis a special correspondent at Business Insider.
