Cerberus Capital Management's dealings with Steward Health Care have come under scrutiny following allegations of fraudulent activities and mismanagement. Reports indicate that under Cerberus' ownership, Steward Health Care entered into a questionable operating agreement with the Maltese government and engaged in practices that have been labeled as fraudulent. Additionally, Cerberus reportedly profited approximately $800 million from its investment in Steward Health Care, raising concerns among lawmakers and the public. Senators Elizabeth Warren and Ed Markey have voiced their disapproval, with Warren proposing legislation to claw back profits made from such practices and Markey advocating for increased transparency and regulation of private equity investments in health care. The controversy has also drawn attention to the role of Medical Properties Trust (MPW), with allegations of misrepresentation and mismanagement of funds related to Steward Health Care, including a $335m convertible loan. Key figures mentioned include Aldag & Hamner from MPW and Steward Health CEO Ralph de la Torre.
The CEO’s refusal to appear at yesterday’s hearing was cowardly. He owes Massachusetts residents an explanation for his part in looting Steward hospitals. We’ll keep working to hold him and his fellow executives accountable. https://t.co/0Rmckl2J31
Sen. Ed Markey wants increased transparency around private equity investment in health care services companies, such as hospitals, dialysis centers, and physician groups. He also is proposing new federal abilities to stop those deals from ever happening. https://t.co/SsVtV3oUNU
$MPW has long concealed and misrepresented its true role in the Steward recap with a clear intent to deceive multiple constituencies. I wonder what input $MPW had into language in the PR linked below? https://t.co/cABdZCDo0B 1/x https://t.co/SRN8zkt2pZ
There are many giveaways in Cerebus's response that $MPW misled investors. This is a case of mouth moving = misrepresenting the truth from management. How investors think this is acceptable is beyond me. https://t.co/PuCB1rIAwW
Cerberus' statement in response to the HELP hearing yesterday is live. Cerberus reiterate that MPW purchased a convertible loan from them. This is ludicrous, and was not accurately reported by $MPW https://t.co/hwmYIhnv0y https://t.co/5CslHXrjlV
$MPW is at a stage where management will start to look after themselves. Has management pledged stock informally, despite a non-pledging clause in their contracts? Exciting times are ahead as id mode shines through. P.S. It was really bad. https://t.co/kDm8mVM5mh
A chair for Steward Health CEO Ralph de la Torre was notably vacant during the Senate's hearing on the catastrophic financial mismanagement of the company's Massachusetts hospitals and growing precarious role of private equity in healthcare Wednesday. https://t.co/HKV5kLO9k9
We must hold executives who looted Steward’s hospitals accountable & ensure private equity can't repeat this trick. I have a new bill coming to claw back CEO compensation when their practices endanger health care & prevent investors from stripping hospitals of their real estate. https://t.co/2HUirjDHdR
A private equity firm looted Steward Health Care, failed to invest in Massachusetts facilities, & appears to have walked away with a profit of at least $800 million. We need to claw back those massive profits from the executives responsible for this mess. https://t.co/0Rmckl2J31
We’re on hour two of my field hearing in Boston to examine the impacts of for-profit forces on our health care system. Join us now as we hear testimony from health care professionals and community leaders. https://t.co/NMaWUQ50Fg
Today I'm announcing my Health Over Wealth Act to hold for-profit companies accountable & create a stronger health care system no longer vulnerable to corporate greed. We need for-profit forces to know the bottom line is accountability, not bank accounts. https://t.co/Y1CSumMlzN
Watch live: Markey holds hearing on for-profit companies in health care https://t.co/8rlIpCUtqW
It's abundantly clear $MPW management cannot be trusted. Aldag et al have: 1) Mischaracterised loans. 2) Misrepresented the quality of tenants. 3) Misled investors on rent received & the quality of deals. 3) round-tripped vs cut the rent as admitted in the following video 1/2 https://t.co/zVvKidqbke
Cerberus says its investment in Steward hospitals yielded an $800 million profit https://t.co/tA4ofqpEBT
Private equity firm Cerberus looted Steward Health Care & walked away with at least $800 million in profit, leaving hospitals in trouble & hanging patients & workers out to dry. It's wrong & we should claw back these massive profits from the private equity executives responsible. https://t.co/YAo6dkR0JC
Cerberus Capital Management, which more than a decade ago snapped up the Massachusetts hospital system that became Steward Health Care, confirmed this week that its investment yielded a profit of about $800 million. https://t.co/iwMsRFIcKN
$MPW - enter another level of fraud! The Cerebus letter throws $BSAG et al under the bus with a convertible!? Tomorrow it may even reverse back over them! Cc. MPW lawyers, your client's in serious trouble! Hamner -- Founder, Executive VP, CFO & Director - No, there's no equity, https://t.co/h7oqUWFSRD
Lawyers will want to know how $MPW could own the convertible. Despite assurances, the deal involved no equity. Aldag & Hamner are in real trouble! More to come tomorrow...no doubt! https://t.co/jWJUEivc2e
Scamner states in 2021 Q4 that its $335m convertible loan to Steward, purchased from Cerberus, did not have an equity component. https://t.co/WoFnBALy2R This is fraud. $MPW https://t.co/uoYqMfpRmV https://t.co/f8Rhe1uwrb
Cerberus' response to the Steward enquiry is now live on our website. It is farcical. https://t.co/G6rwf5sQd0 Cerberus brag that, under its ownership, SHCI entered into an operating agreement with the Maltese government which transpired to be fraudulently obtained. $MPW 1/
Cerberus' response to the Steward Healthcare enquiry is now live on our website. It is farcical. https://t.co/G6rwf5sQd0 Cerberus brag that, under it's ownership, SCHI defrauded the Maltese government. $MPW 1/