Axios Boston
September 09, 2024
1 big thing: Fallout from Steward's sale
It's official: Six of Steward's Massachusetts hospitals will get new operators under a $343 million deal that was given the green light in bankruptcy court last week.
Why it matters: Between the deal and the closure of two hospitals, this is the end of a months-long ordeal that critics say laid bare the risks of private equity involvement in health care and threatened access to hospital care for patients.
- The dispute illustrates the potential uncertainty of one of private equity's most criticized strategies in health care: sale-leasebacks, in which providers' underlying real estate is sold in exchange for cash that can be reinvested in the facility.
Yes, but: Steward runs dozens of other hospitals in other states whose operations are being transferred under a settlement reached with Medical Properties Trust, the real estate investment trust that has owned nearly all of Steward's hospitals' real estate.
- MPT wants new operators for those facilities and will have to reach a rent agreement with them.
- Before they reached the settlement, Steward and MPT had been feuding to the point that Steward last month sued its landlord, arguing that MPT was impeding its effort to sell the hospitals.
The big picture: While it's an open question as to how much of an anomaly the Steward case is, REITS own hundreds more health care facilities nationwide.
- Supporters say they free up much-needed cash infusions.
- The argument against seems to be what was described in court: There's nothing stopping the land from being overvalued, and if the tenants can no longer pay their rent or need to sell for some other reason, the private market won't pay the same rates.
- "Sale leasebacks are agreements that turn healthcare organizations into financial assets to be bought and sold without any regard for human care. They should be outlawed in health care," said Cornell professor Rosemary Batt.
2. 💨 Youth e-cig use drops
Half a million fewer U.S. teens said they used e-cigarettes this year compared to last, per the 2024 National Youth Tobacco Survey.
Why it matters: It's the lowest level in a decade and a signal of progress in efforts to curb youth tobacco use, the Food and Drug Administration and the Centers for Disease Control and Prevention said.
By the numbers: Over 1.6 million middle and high school students told researchers they currently use e-cigarettes, down from 2.1 million last year, per the 2024 National Youth Tobacco Survey.
- 7.8% of high school students and 3.5% of middle school students reported current e-cigarette use, per the survey, which polled nearly 30,000 students from 283 schools between January 22 and May 22.
Between the lines: The 2024 survey credited a crackdown on vaping products like Elf Bar and other enforcement efforts.
- The findings also come after Massachusetts and other states banned flavored tobacco product sales.
- Juul paid Massachusetts $41 million in 2023 as part of a multi-state settlement.
- Since then, Massachusetts advocacy groups like The 84 have continued student-led education campaigns warning against the dangers of youth vaping.
What they're saying: "There's still a lot more work to do because once there's a step forward in terms of educating young people … the next thing you know, there's another product available," says state Sen. John Keenan.
- Keenan, who sponsored the bill banning flavored tobacco products, supports a nationwide ban.
3. BTMU: More BPS Sundays
4. 📆 Social calendar
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5. 🙌 Pats start season strong
Axios Boston
