DOJ investigating Steward Health Care over ties to foreign government
Steward Health Care is the focus of a criminal investigation over allegations of fraud and corruption, journalists at CBS News have learned.
According to the report, the health system is suspected of violating the Foreign Corrupt Practices Act, a law designed to thwart foreign governments and American businesses from engaging in corrupt dealmaking.
Steward operates hospitals overseas, and the probe by the U.S. Department of Justice (DOJ) in Boston is centered around its deal with the government in Malta to run three of the island’s state-owned healthcare facilities. Journalists cite “two people familiar with the matter” as their source for the reporting.
The DOJ investigation is reportedly ongoing and no charges have been filed.
Notably, the company was purchased by private equity firm Cerberus, which initially began making investments in the hospital in 2010. The company has struggled to stabilize its business over the last several years, resulting in backlash from lawmakers who attribute Steward’s financial struggles to the private equity buyout.
Steward has also been accused of bizarre expenditures unrelated to their core healthcare business, including spending $7 million on intelligence firms to spy on critics.
Steward is in the midst of restructuring after filing for bankruptcy earlier this year. It’s currently seeking buyers for some of its 31 hospitals in eight states.
Read the full report from CBS News at the link below.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.