Steward's losses mount as system takes a long-term view

Operating losses at Boston-based Steward Health Care System are growing, which raises concerns about the for-profit hospital network's financial stability, according to the Boston Globe.

The findings on Steward's financial performance came from a report released on Wednesday by Massachusetts Attorney General Maura Healy. The attorney general issues reports on Steward's progress as part of the health system's 2010 deal to buy several struggling hospitals in the state.

According to the attorney general's report, Steward lost $75 million on operations in 2014, up from losses of $55 million in 2013 and $22 million in 2012.

"Steward acquired hospitals that were experiencing financial difficulties, and Steward has continued to experience challenges in its financial performance," according to the attorney general's report.

A Steward spokeswoman, Brooke Thurston, told the Boston Globe the health system's losses in 2014 were largely attributable to financially troubled Quincy (Mass.) Medical Center, which Steward closed in late 2014. She also said the health system has made key investments for the future.

"Faced with the choice of making short-term cost cuts to create immediate financial returns, Steward instead has invested $850 million in the system to produce long-term financial sustainability," Ms. Thurston told the Boston Globe.

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