It would be interesting to see how this affects private equity in healthcare. It would be better to remove private equity from more industries, but that is wishful thinking.
@hedgeyeREITs does an awesome job pointing out the the schemes Medical properties trust and subsequently steward and their other tenants were upto if anyone is interested in the financial aspects of the case.
People should definitely end up in prison over this, looting almost 10 billion dollars of wealth from hospitals all over the country to enrich themselves at the expense of all these communities.
Many here have opined that the way to fix what's wrong with hospitals is to let doctors own them again. Well, Steward is 90% physican-owned.
The lesson here is that a system that allows any individuals to profit so obscenely on the backs of the poor and disenfranchised needs to be limited, be they physicians, MBAs or private equity leeches. Personally I think those limits should also extend to other types of facilities like free standing surgery centers and EDs, SNFs, etc.
Per Wikipedia, Steward was bought back from private equity by physicians after all the damage had been done and the lease back agreements had already been made (IE, all after private equity got their cut and got out of dodge). It was probably a last ditch effort to save the system from failure.
This should never be mentioned in the context of what happens with physician owned systems, this is entirely PEs doing.
And what % of the physicians who owned Steward (prior to purchase by Optum) consisted of de La Torre? Otherwise agree, these people are criminals and thugs and should be locked up for the duration of all the years they stole from their patients.
Steward was owned by a PE firm called Cerberus essentially from it's start and was only bought by the physician group recently when PE saw the damage they had wrought and needed an exit before the collapse. I doubt the physicians knew what they were getting into.
Well sure, but it's not like he was a "Seward" physician. He was recruited from another system specifically as CEO, he's not a doc working in the system who bought into it.
He assisted in screwing over the rest of the physicians working in that system.
I agree and that’s what I was implying in my response—that physician owned was a misnomer when most of the shares went to him, a criminal who happened to be a physician.
This story reads like a bad James Bond plotline. American equity creates multinational wealth extraction scheme that involves former Libyan Gaddafi-era healthcare brokers and defrauds the island nation of Malta to the tune of billions of dollars. What in the world.
We brought PE into medicine. Now we are seeing g its effect. These guys should go to Club Fed and their partners in PE world ban from doing business.
It would be interesting to see how this affects private equity in healthcare. It would be better to remove private equity from more industries, but that is wishful thinking.
I have also attempted to restart the r/stewardhealthcare subreddit, if anyone is interested at centralizing discussion over there.
@hedgeyeREITs does an awesome job pointing out the the schemes Medical properties trust and subsequently steward and their other tenants were upto if anyone is interested in the financial aspects of the case. People should definitely end up in prison over this, looting almost 10 billion dollars of wealth from hospitals all over the country to enrich themselves at the expense of all these communities.
I see what you mean: https://x.com/HedgeyeREITs/status/1804557619341722091
In the not too distant past PE got involved in companies to build them up into something more valuable now just vultures to pick clean
Many here have opined that the way to fix what's wrong with hospitals is to let doctors own them again. Well, Steward is 90% physican-owned. The lesson here is that a system that allows any individuals to profit so obscenely on the backs of the poor and disenfranchised needs to be limited, be they physicians, MBAs or private equity leeches. Personally I think those limits should also extend to other types of facilities like free standing surgery centers and EDs, SNFs, etc.
Per Wikipedia, Steward was bought back from private equity by physicians after all the damage had been done and the lease back agreements had already been made (IE, all after private equity got their cut and got out of dodge). It was probably a last ditch effort to save the system from failure. This should never be mentioned in the context of what happens with physician owned systems, this is entirely PEs doing.
And what % of the physicians who owned Steward (prior to purchase by Optum) consisted of de La Torre? Otherwise agree, these people are criminals and thugs and should be locked up for the duration of all the years they stole from their patients.
Steward was owned by a PE firm called Cerberus essentially from it's start and was only bought by the physician group recently when PE saw the damage they had wrought and needed an exit before the collapse. I doubt the physicians knew what they were getting into.
De la Torre, who a large # of shares went to after the sale from Cerberus, seems like a combination of dumb and criminal, certainly not innocent.
Well sure, but it's not like he was a "Seward" physician. He was recruited from another system specifically as CEO, he's not a doc working in the system who bought into it. He assisted in screwing over the rest of the physicians working in that system.
I agree and that’s what I was implying in my response—that physician owned was a misnomer when most of the shares went to him, a criminal who happened to be a physician.
He's definitely not a true scotsman
Physician owned implies it is owned by the physicians who *work there.* I am certainly not denying physicians can be criminals.
This story reads like a bad James Bond plotline. American equity creates multinational wealth extraction scheme that involves former Libyan Gaddafi-era healthcare brokers and defrauds the island nation of Malta to the tune of billions of dollars. What in the world.