Lessons from the collapse of Steward Health Care

If you want to understand how far awry the U.S. health care system can go, look no further than Steward Health Care, a 31-hospital system in eight states that collapsed in a spectacular bankruptcy last year. The Steward case has gained national attention as an example of the mischief that bad actors can cause hospitals and the communities that rely on them. A Brookings analysis of the Steward saga illuminates a less obvious culprit: oversight of the nation’s hospitals by states and the federal government. The study shows that regulation has been inadequate–at times weakly enforced, at other times absent.

On October 9, the Center on Health Policy at Brookings convened experts to explore lessons from the collapse of Steward Health Care. The program presented Brookings’ findings of the regulatory shortcomings that failed to cushion Steward’s downfall. One panel delved into the ground-level view of Steward’s origins and fragility and the cost to its patients. A second panel took a policy view, focusing on private equity in health care, the gaps in state and federal hospital regulation, and needed improvements to the system.

Online viewers posted questions in advance by emailing [email protected].