Health systems that acquired former Dallas-based Steward Health Care hospitals have described significant electronic health record and billing-related costs during transition periods, The Boston Globe reported Feb. 18.
Boston-based Boston Medical Center Health System, Providence, R.I.-based Brown University Health and Merrimack Valley Health have all described substantial costs tied to operating Steward’s legacy medical record and billing systems during transition periods, according to the report.
Boston Medical Center Health System took over St. Elizabeth’s Medical Center in Brighton, Mass., and Good Samaritan Medical Center in Brockton, Mass., in October 2024. CEO Alastair Bell told The Boston Globe the system relied on Steward’s electronic medical record system for about six months after the takeover. While relying on Steward’s platform, Boston Medical Center struggled to collect payments.
Massachusetts has provided significant financial support tied to the transition, including $80 million dedicated to a new electronic medical record system, The Boston Globe reported.
Providence, R.I.-based Brown University Health also faced steep technology costs at Morton Hospital in Taunton, Mass., and Saint Anne’s Hospital in Fall River, Mass. CEO John Fernandez told The Boston Globe the organization spent tens of millions of dollars wrestling with Steward’s electronic medical record system while transitioning to a new one. The newspaper also reported Brown confronted tens of millions of dollars in costs to operate a medical record and billing system through Steward for months following the acquisition.
At the former Holy Family Hospital campuses in Methuen, Mass., and Haverhill, Mass., Merrimack Valley Health CEO Diana Richardson told The Boston Globe the organization was “hemorrhaging cash” while trying to operate Steward’s systems and make critical upgrades. She also described extensive infrastructure deterioration at both facilities, including leaky roofs, electrical and heating system issues, decrepit equipment and entire units that were offline due to neglected infrastructure.
Despite the difficulties, leaders at the acquiring organizations said they remain committed to rebuilding services and stabilizing the hospitals, The Boston Globe reported.
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