Steward Health Lost $14.6M in 2011
Boston-based Steward Health Care System posted an operating loss of $14.6 million in 2011 and ran a total deficit of $56.9 million for the year, according to a report from Massachusetts Attorney General Martha Coakley's office.
However, the for-profit system, which is owned by the private equity firm Cerberus Capital Management, obeyed mandates set down by state regulators before they approved Steward's November 2010 acquisition of the six hospitals owned by non-profit Caritas Christi Health Care, according to the 70-page compliance monitoring report.
State monitors do not appear to be overly concerned about the red ink in Steward's first year of operation.
"The review reinforces previous findings that Steward acquired community hospitals in deteriorating financial condition and with significant deferred capital investment needs," the report says.
"The first year review indicates that Steward is striving to meet its stated goal of keeping more care in the community. One year of performance information is not enough to predict how Steward will perform in future years."