Community hospitals call for AG review of Steward-doc contracts

Community hospitals in Massachusetts are calling on the state attorney general to review physician contracts under a recent deal between hospital operator Steward Health Care System and a physician group formerly affiliated with Boston's Beth Israel Deaconess Medical Center, Whittier Independent Practice Association, reports The Boston Globe.

Last month, Beth Israel claimed that the expanding for-profit health system lured away 150 physicians with potential kickbacks, as the recent deal between them could have violated federal and state anti-kickback statutes, it argued.

Although Steward says the deal is legal, Massachusetts Council of Community Hospitals Executive Director Donald J. Thieme told Attorney General Martha Coakley that Steward's actions with Whittier Independent Practice Association were "predatory actions against community hospitals," according to the article.

Steward spokesman Chris Murphy responded, "How is it predatory when we've written into the contract that they can refer patients wherever they feel is the most appropriate?'' Murphy said.

"This letter seems to be saying a system of 10 community hospitals is damaging community health care, which is our own business,'' Murphy added. "Without us buying these hospitals, most, if not all of them, would have failed or closed. We're out there as a business saving community hospitals and keeping patients in the community.''

Steward Health Care has 10 hospitals in Massachusetts with more than 14,000 employees. With recent buys of area hospitals, Steward is looking to create pockets of geographically concentrated hospitals "to generate operational synergies and share resources to enhance financial stability and provide a wider range of services to patients," according to the organization's website.

For more information:
- read the Boston Globe article

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