Trahan pushing to protect nonprofit hospitals

METHUEN — In the wake of ongoing issues with Steward Health Care System, the U.S. House of Representatives is looking to pass a bill to provide additional funding to “fill the gaps” for struggling community health systems, according to Rep. Lori Trahan, D-Westford.

Trahan. D-Westford, introduced the Reinforcing Essential Health Systems for Communities Act with Rep. David Valadao, R-California, to provide more federal funding and support to the safety net hospitals.

“Essential health systems serve the most vulnerable families in cities and towns across the nation, and these facilities deserve the funding and support necessary to maintain and expand their lifesaving services,” Trahan said.

Trahan recently called out potentially “dangerous” outcomes with Steward Health Care’s system “private equity playbook,” which could affect her own delegation. She was also a signature with other reps to Steward Health Care System about possible closures, violations of Medicare rules and reports of missing payments.

While Steward Health Care System announced it would not be closing Massachusetts hospitals, the effects could still be detrimental to patients.

“Steward-owned hospitals would not be eligible for federal assistance through this designation because of their for-profit, private equity model,” Trahan said.

“However, if Holy Family Hospital was sold to a nonprofit health system as part of the agreement that Steward recently announced but has provided no details on, the facility could then be eligible to receive additional federal funding and resources under this legislation to better support the patient population in the Merrimack Valley.”

The act targets over 1,000 hospitals throughout the nation. Trahan said this would designate about 18 hospitals in Massachusetts as “essential health systems,” including Lowell General Hospital and Lawrence General Hospital.

“Creating an essential health system designation acknowledges the vital role these systems play in improving the health, well-being of vulnerable populations that rely on them, and potentially reducing the disparities in their financial underpinnings,” said Abha Agrawal, president and CEO of Lawrence General Hospital.

Lawrence General’s Dr. Eduardo Haddad shared staff concerns with Gov. Maura Healey and the Public Health Council on Wednesday about the news surrounding Steward Health Care System’s Holy Family Hospitals in Methuen and Haverhill, while stressing his hospital’s commitment to support patients in need.

With the Essential Health Systems legislation, Trahan continues to work to support Merrimack Valley health care.

“Private equity hospitals like Steward put profits over patients, and communities like Haverhill and Methuen are the ones who are forced to pay the price,” Trahan said.

“This legislation is designed to deliver additional funding to nonprofit safety-net hospitals that are often forced to fill the gaps left when corporations like Steward move on.”

Essential health systems often serve disproportionately higher numbers of Medicaid, low-income Medicare and uninsured patients.

The hospitals often provide five times more uncompensated care compared to other hospitals, according to Trahan. Yet, they are historically underfunded and often limited in their ability to maintain and expand the critical health services they offer to patients, she added.

“We must ensure hospitals in our rural and underserved communities have the resources they need to provide high-quality care,” said Valadao. “The Reinforcing Essential Health Systems for Communities Act will clearly identify the hospitals that serve our most vulnerable communities, allowing critical federal resources to be more easily directed toward them.”

Hospitals qualify as “essential health systems” if they have a disproportionate patient percentage of Medicaid and low-income Medicare patients. The hospital could also serve a high percentage of Medicaid and low-income patients, or it could help capture the costs of care delivered to uninsured individuals.

“Safety-net providers are vital to improving the health of our community and addressing the health needs of at-risk and medically underserved populations,” said Amy Hoey, president of Lowell General Hospital.