Steward hit with federal investigation over alleged fraud, corruption
Becker's Hospital Review
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Contributed by: Drex DeFord
Summary
Steward Health Care, a financially challenged Dallas-based health system, is under criminal investigation by federal prosecutors from the U.S. Attorney's office in Boston. The investigation involves allegations of fraud and Foreign Corrupt Practices Act violations, linked to a failed deal with Malta to operate three state-owned hospitals. While no charges have been filed regarding the Malta situation, Steward confirmed it is cooperating with the U.S. Department of Justice. The beleaguered health system, which filed for bankruptcy on May 6, is auctioning off its 31 hospitals and physician group, though the auction process has faced delays. UnitedHealth Group's Optum recently withdrew from a planned acquisition of Stewardship Health, further impacting Steward's future.
