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Healey doubles down on calls for Steward Health to leave Mass.

St. Elizabeth's Medical Center, a Steward Health Care family hospital in Brighton, Mass. (Robin Lubbock/WBUR)
St. Elizabeth's Medical Center, a Steward Health Care family hospital in Brighton, Mass. (Robin Lubbock/WBUR)

Gov. Maura Healey on Monday increased the pressure on financially troubled Steward Health Care to sell its nine Massachusetts hospitals and leave the state, calling the for-profit company a "house of cards" and a "charade."

The governor had ordered Steward to turn over audited financial information by Friday so the administration could understand and develop plans to manage the aftermath of the financial issues at Steward hospitals. Steward is about $50 million behind on rent, according to its landlord, and has failed to pay vendors, according to court records.

Steward delivered some information last week, but administration officials said it was insufficient. Steward officials said auditors had not finished reviewing all of the company's financial statements.

"Steward didn't produce audited financials because Steward doesn't have audited financials," Healey charged at a State House press conference Monday. She went on to speculate that Steward's finances are so bad "no auditor will sign off on their financial information."

What is known about Steward's finances is that the company has suffered heavy losses and accumulated massive debt over several years.

Steward's Massachusetts hospitals include St. Elizabeth's Medical Center in Brighton and Carney Hospital in Dorchester. The Dallas-based, privately-held company operates more than 30 hospitals in eight states.

All Massachusetts hospital systems are required to share financial statements with state officials annually, but Steward executives have long sought to keep their numbers secret.

In 2017, they sued state officials for demanding financial documents. They're appealing a 2023 Superior Court ruling that required them to submit several years’ worth of unredacted financial statements.

State officials argue the lack of information hampers their ability to develop plans to stabilize the health care system and preserve access to care for patients as Steward falters. Healey has called on the company to work with her administration in completing "an orderly transition" out of Massachusetts.

The company is also facing pressure from federal officials. U.S. Rep. Stephen Lynch said last week that Congress could issue subpoenas to compel Steward executives to share financial information.

Steward officials have insisted they are cooperating with public officials and have worked to comply with data requests. In a statement Monday, they said they have provided some audited financials to state officials and will provide others once the statements are complete.

"We have given a voluminous amount of financial material and documentation, and we continue to work with state officials to provide information," Steward officials said.

But Massachusetts House Speaker Ron Mariano, whose district included Quincy Medical Center, which Steward closed in 2014 after millions of dollars in losses, had harsh words for the company.

"If anyone is feeling sorry for Steward right now, they're crazy," he said, following Healey's remarks. "Steward has practiced a game of hide-the-numbers, and they've been very successful at it."

Asked by a reporter if Steward could face criminal penalties, Mariano said "there's always a chance."

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