The Gilded Age of Medicine Is Here

A report from Senator Ed Markey's office revealed that since Cerberus bought Steward, many facilities have struggled with funding, leading to key investments being forgone, such as staffing and equipment upgrades. This has resulted in patients facing longer wait times in emergency rooms, leaving without care, and increased mortality rates for common conditions. Steward's financial strategies have had tangible negative impacts on patient care and hospital operations over recent years.

Since Cerberus's acquisition in 2010, there have been serious criticisms about Steward Health Care’s operational management, particularly regarding maintenance and staffing shortages across various facilities. Hospitals had to contend with deteriorating conditions, a significant indicator being a Florida hospital plagued with a bat infestation and a Texas facility cited for unsafe patient room conditions. These issues have led to negative outcomes for patients, raising serious concerns over the care provided.

Cerberus Capital Management's stewardship of Steward Health Care has come under fire following allegations of neglect and poor management, particularly highlighted by the experiences of employees who derogatorily dubbed their workplace 'Carnage' hospital. Under Cerberus’s ownership, significant cuts to budget and resources led to declining standards, assembly-line healthcare practices, and ultimately, the filing of bankruptcy due to untenable financial conditions. The implications for patient care during this period were severe and well-documented.

In the wake of Steward Health Care's financial troubles, such as those highlighted by recent reports and the bankruptcy filing, the C.E.O. Ralph de la Torre faced critical scrutiny, especially after a failure to appear before a Senate committee regarding oversight. The lease arrangements put in place post-acquisition have been argued to be detrimental, limiting hospitals' ability to operate effectively and prioritize care for their patients, thus fuelling the current crisis.

Read at The New Yorker