• The Tragedy at Steward Healthcare - Part Two “Bad Decisions”

  • Jun 6 2024
  • Length: 19 mins
  • Podcast

The Tragedy at Steward Healthcare - Part Two “Bad Decisions” By cover art

The Tragedy at Steward Healthcare - Part Two “Bad Decisions”

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  • Summary

  • We continue our Steward Healthcare discussion with Ellen Zane, former CEO of Tufts Medical Center in Boston. It begins with 8 struggling nonprofit Caritas Christi hospitals in Boston. A competent physician is hired as the new CEO, but he has no prior executive management experience. Financial struggles continue despite the hospital’s sale to private equity firm Cerberus Capital. Steward is now a for-profit entitywhich puts additional demands on cash flow. A sale of physical assets provides cash for expansion rather than ongoing operations.

    • The Wrong CEO
    • Dubious Due Diligence
    • Nonprofit Becomes For-Profit
    • Property Taxes & Management Fees
    • The Goal Becomes Expansion
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