Steward begins to bounce back after hospital closure

Boston-based Steward Health Care System posted a 6.54 percent profit margin across its facilities as of June 30, with only one of the system's hospitals, Carney Hospital in Dorchester, Mass., reporting a negative total margin.

 

In 2011, when Steward formed, four of the system's six hospitals were operating at a loss. Steward has added additional hospitals over the years, many of which also had struggling finances.

 

Fast forward to 2015, and Steward has successfully improved the finances of its hospitals, with only Carney Hospital operating in the red in the second quarter of 2015.

 

St. Elizabeth's Medical Center in Brighton, Mass., is a Steward facility that has shown significant improvement over the years. In 2011, the hospital reported a net loss of nearly $21 million. The hospital moved into the black in 2013, and in 2014 the hospital reported a $17 million profit.

 

Although Steward is turning around its facilities, the system still has work to do. Steward reported total negative net assets in its most-recent financial report, which was largely associated with Quincy (Mass.) Medical Center, which the system closed in late 2014, with the exception of emergency services. At that time, Steward said Quincy was losing $20 million annually due to a number of factors, including an increase in regional competition.

 

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