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Steward Health Care Under Scrutiny for Financial Misconduct

In a significant development earlier this year, a Maltese magistrate concluded a lengthy four-year investigation into allegations surrounding Ernst and de la Torre, recommending charges of money laundering, criminal association, and the corruption of public officials. Among those implicated is former Prime Minister Joseph Muscat, according to the Globe’s reporting.

Meanwhile, fresh allegations have emerged regarding Steward Health Care System’s financial practices. In a recent investigative report, the Globe detailed how Steward executives reportedly mismanaged their financial relationship with TRACO, a malpractice insurer owned by Steward. Originally intended to function as an independent insurance entity, TRACO was to collect malpractice insurance premiums on behalf of Steward’s physicians, using the pooled funds to handle claims and legal expenses.

However, instead of fulfilling this obligation, Steward allegedly provided TRACO with IOUs instead of payments, leading to an alarming financial situation. By the close of 2023, TRACO’s financial records revealed staggering figures—$99 million in outstanding loans, primarily owed by Steward, and an additional $176 million categorized as “accounts receivable,” predominantly also owed by Steward.

The implications of Steward’s financial troubles are dire, particularly in light of its bankruptcy, raising serious concerns over the insurance coverage status for healthcare providers and the compensation for patients affected by Steward’s services. A poignant example cited by the Globe is the tragic case of Yasmany Sosa, whose wife, Yanisey Rodriguez, tragically died from preventable complications during childbirth at Steward North Shore Medical Center in Florida in September 2022. Although Steward reached a $4 million settlement with Sosa in March, the funds have yet to materialize, leaving him in a precarious situation.

“They killed my wife, that’s for starters. Second of all, they destroyed my family,” Sosa expressed to the Globe via a translator. “This has all become a bunch of loopholes, legal strategies. This really is very difficult for me… I’ve already lost everything.”

Source
arstechnica.com