Steward reports $52m loss for 2013
Releases financials after deleting several pages
STEWARD HEALTH CARE reported a net loss of nearly $52 million in fiscal 2013, according to financial statements the for-profit health care company released after more than a year of stonewalling.
The dispute over the documents – which had prompted a $5,000 fine from the state – ended when regulators agreed that Steward could redact several pages of the financial statements that dealt with long-term debt, non-hospital businesses, loan and pledge agreements with executive officers, and “investor share mark.” Investor share mark may be a reference to Steward’s financial dealings with corporate parent Cerberus Capital Management, a private equity firm in New York.
State officials released the documents late Friday afternoon. Steward submitted the information on Tuesday.
A letter accompanying the financial documents from Kevin Conroy of Foley Hoag said Steward should not have to pay the $5,000 fine because the redacted information is confidential. A spokesman for the Center for Health Information and Analysis said the agency agreed to the redactions but is demanding payment of the fine. Steward released the entire contents of its financial statements in fiscal 2012 and 2011.
Steward had cash and cash equivalents at the end of 2013 of $36.5 million, down from $52.2 million the previous year. The hospital company also had $550,000 in letters of credit outstanding, down from $2.1 million the prior year. It spent $4.8 million on advertising, down from $9.8 million the year before.
The financial documents said the spinoffs of Laboure College, Steward Research and Specialty Projects Corp., and the charitable medical service organization Por Cristo cost the company $7.9 million, $5.1 million, and $3.6 million, respectively.
Steward also reported that it acquired Hawthorn Medical Associates, a physician practice, in July 2013 for $32.9 million.Cerberus incorporated Steward in late 2010 as a vehicle to purchase and operate six struggling Catholic hospitals in Brighton, Dorchester, Norwood, Brockton, Fall River, and Methuen; since then, Steward added five more hospitals in Ayer, Haverhill, Taunton, Quincy, Stoughton and a number of physician groups. It closed the money-losing Quincy Medical Center last year despite promises to keep it open until 2017.
Steward provides to the state fairly detailed information on the individual hospitals it owns but starting with fiscal 2013 it balked at handing over the company’s consolidated financial statement. Steward says it shouldn’t have to turn over the consolidated financial statement because the document includes information on non-hospital businesses that are not covered by state regulation.