Amidst unprecedented challenges across the health care industry and within its system, Steward Health Care announced today a six-point action plan that will enable the organization to emerge as a sustainable business and move into its next operational phase.
Steward Health Care Unveils Six-Point Action Plan for Future Sustainability
Steward Health Care, founded in 2010 with a mission to provide quality healthcare to vulnerable populations, particularly in Massachusetts, announces a strategic plan to ensure uninterrupted patient care and address operational challenges.
Since its establishment in 2010 with the acquisition of the struggling Caritas Christi community hospital system, Steward Health Care has remained steadfast in its mission to provide high-quality healthcare to vulnerable patient populations, beginning with Massachusetts and expanding to other regions. Over the years, Steward has evolved its business and operations to develop a care model that addresses external pressures and ensures uninterrupted patient care across its service areas.
Dr. Michael Callum, Executive Vice President for Physician Services and Interim President of the Northeast Region at Steward, emphasized the organization’s commitment to prioritizing patients, staff, and communities. He highlighted that while the approach may evolve over time, the fundamental mission remains unchanged.
The pillars of Steward’s Action Plan encompass several key areas:
- Funding and Financial Stability: Steward has recently finalized a robust financing agreement with its current lenders, securing a $150 million cash infusion. This infusion aims to provide additional liquidity as the company progresses towards the sale of its physician group, Stewardship Health. The financing agreement allows Steward to reset its operations, address vendor obligations, and work towards achieving a sustainable operating model. Notably, the lenders have expressed confidence in this plan by increasing their financial commitment and extending the forbearance agreement through April 30, 2024.
- Employee Retention and Continuity: Steward recognizes its skilled and dedicated clinicians and staff as its primary asset. To maintain staffing levels and ensure continuity of care, Steward has negotiated new labor agreements with organizations such as the MNA and SEIU. Additionally, the company has implemented measures to incentivize employees, including referral fees of up to $40,000 per hired employee.
- Asset Sales: Steward is actively engaged in selling non-essential assets, such as Steward-owned aviation, and downsizing its non-patient footprint through back-office consolidations. These efforts aim to improve the system’s liquidity position and focus on core operations.
- Northeast Restructuring: Steward has enlisted Alix Partners to advise on a restructuring plan aimed at better supporting hospitals and delivering high-quality care in community settings. New leadership within the northeast region has been appointed to maintain a focus on patient care and quality.
- Cooperation and Transparency in Massachusetts: Steward has demonstrated its commitment to transparency, compliance, and cooperation with state agencies and regulatory bodies. The organization has provided detailed financial documentation and worked to comply with requests from the Massachusetts Attorney General’s Office and the EOHHS.
- Leadership Communication: Senior representatives from Steward intend to engage with public officials in the Commonwealth to discuss plans for ensuring continued high-quality care for the patient population.
In summary, Steward Health Care’s comprehensive Action Plan underscores its dedication to delivering exceptional patient care while addressing financial challenges and fostering transparency and cooperation with stakeholders.
