Mass. attorney general pushes for patient-care ombudsman and scrutiny of private-equity deals after Steward bankruptcy

Attorney General Andrea Campbell said the Commonwealth will use legal tools available under state law to protect patients and workers after Steward Health Care filed for Chapter 11.

"Bankruptcy will provide greater transparency about the extent of Steward's liabilities and existing revenue," Campbell said, and she stressed that bankruptcy does not permit Steward to shut its doors or avoid public-health and safety obligations. Campbell said her office has been "deeply engaged throughout this process" and is pressing for the appointment of a patient-care ombudsman "to represent the interests of patients and employees during the bankruptcy proceedings."

Campbell said her office is also working with the legislature on longer-term policy responses to prevent similar cases in the future, including measures targeting sale-leaseback transactions and private-equity structures that she and others say allowed investors to cash out while saddling hospitals with long-term debt. She said if investigators find violations of law, her office will pursue enforcement.

Campbell's remarks framed the attorney general's approach as both immediate (seek court protections and an ombudsman) and structural (policy work with the legislature). She acknowledged open questions in the bankruptcy process and said the office will provide more detail as its work progresses.