Steward Health Ch. 11 Lifts Lid On PE In Healthcare

Steward Health’s $9 billion Chapter 11 has come under scrutiny from state attorneys general seeking to uncover why a once-rapidly growing hospital network ended up buried in debt, with authorities taking the unusual tack of turning a special eye toward its former private equity owner Cerberus Capital Management, experts told Law360.

“Attorneys general in healthcare do get involved. But I haven’t seen, in my experience, attorneys general stepping in to launch investigations related to the reason a hospital filed bankruptcy,” said Clare Moylan, co-founder of healthcare operations and restructuring firm Gibbins Advisors.”