Steward Health Care’s bankruptcy – which the Senate is holding a hearing on tomorrow – is not an isolated incident. It is part of a much larger problem in America. 

Private equity and consolidation in our health care system is a metastasizing disease. Community Catalyst, through its efforts to address the root causes of the medical debt crisis, has identified several ways that policymakers can reign in the profit-driven practices within health systems that have for too long put profit above people. The endorsement of legislation like the Health Over Wealth Act, as well as the Corporate Crimes Against Health Care Act, are important steps in that direction, made even more clear by the recent and ongoing attention on Steward Health Systems. Steward, which operates eight hospitals in Massachusetts, as part of 31 hospitals they have nationwide, has a hefty backlog in unpaid rent and was owned by a private equity firm for nearly a decade.

“Instead of healing our communities, the rapid growth of private equity and consolidation in our nation’s health system is making people sicker. By prioritizing revenue over health and economic well-being, for-profit health care entities are deepening health inequities by making care more costly, less safe, and out of reach for people,” said Michelle Sternthal, Director of Government Affairs, Community Catalyst. “With our partners, we are highlighting the harm to patients, communities, and our nation’s health due to private equity and the concentration of power by a few players. Now more than ever, policymakers need to listen to their constituents and implement protections for those seeking care. The Health Over Wealth legislation is an important step in that direction.”

Read more from Community Catalyst: Steward Health Care’s Bankruptcy: A Cautionary Tale of Corporate Greed in our Health Care System

The rise of private equity and health care consolidation has led to a decline in health outcomes, particularly in reproductive care, as profit-driven motives overshadow patient-centered care. 

This is exacerbating the country’s maternal health crisis and shrinking access to reproductive care. Steward’s prioritization to cut costs and rapidly expand over long-term community health investments resulted in a new mother bleeding out to death shortly after giving birth and closure of obstetric units providing critical care to their communities. Instead of investing in culturally competent care and comprehensive women’s health services, these groups focus on financial gains, worsening disparities and undermining the well-being of communities already hurt by the system, due to racism, classism, and other forms of oppression. 

To speak with someone at Community Catalyst about efforts to put people over profit, please contact Doug Gordon: doug@upshiftstrategies.com.