For Reference:
Steward Health Care’s bankruptcy in May 2024 resulted from a combination of financial mismanagement, excessive debt, and operational challenges. Key factors include:
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Sale-Leaseback Agreements and Mounting Debt: In 2016, Steward sold much of its hospital real estate to Medical Properties Trust (MPT) in a sale-leaseback deal, generating $1.25 billion. This move provided immediate capital but obligated Steward to substantial long-term lease payments. The funds were used for national expansion and investor dividends, but the added financial burden strained the company’s resources. 
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Dividend Payouts Amid Financial Losses: Despite reporting a net loss of $300 million in 2016, Steward paid a $790 million dividend to its private equity owner, Cerberus Capital Management. This payout, primarily funded through the sale-leaseback deal, prioritized investor returns over financial stability. 
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Operational Challenges and Quality of Care: Cost-cutting measures led to staff reductions and inadequate equipment, compromising patient care. Reports highlighted instances where insufficient resources adversely affected patient outcomes, contributing to the system’s decline. 
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Leadership Decisions and Extravagant Spending: CEO Dr. Ralph de la Torre faced criticism for lavish personal expenditures, including luxury yachts and private jets, funded by the company. These actions, amid the company’s financial struggles, raised concerns about leadership priorities and fiscal responsibility. 
Sources:
1. The American Prospect – “Steward Health Care’s Latest Fantasy Story”URL: https://prospect.org/health/2024-05-08-steward-health-cares-latest-fantasy-story/ \n
2. New York Post – “Bankrupt hospital chain paid private equity giant $700M dividend”3. Wall Street Journal – “Steward Health CEO Ralph de la Torre under scrutiny”URL: https://www.wsj.com/business/steward-health-ceo-ralph-de-la-torre-deabfe4b
4. Associated Press – “Massachusetts lawmakers approve bill to close loopholes in health care market”URL: https://apnews.com/article/1bc2aa47766b334faf2cede39810242d
5. Reuters – “Steward Health Care CEO faces contempt vote after Senate no-show”6. Reuters – “US Senate probes Steward Health bankruptcy, subpoenas CEO”Isn’t this the standard practice of corporate raiders where they will buy a company strip it of all its value and then bankrupt it and leave? It seems like this should be extremely illegal.
Suing people they previously donated money to to get that money back is a new low. Yeah, all of this should be illegal.
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US healthcare guts patients’ wallets then gut the institutions that try to help the detriment
what fucking shitbags
and yes already know the responses - “Hail the Democrats! All the Republicans fault! Keep voting the same way every election because eventually a different result will happen!”
