Steward directed staff to delay payments to vendors, former controller says

As a result of the late payments, some suppliers have stopped supplying services to Steward, while others have actually sued the health system..
2 advertising firms sued to gather billings totaling more than $2 million; a linen companies took legal action against for $317,000 in overdue payments; and a New York energy firm sued for $250,000 in natural gas expenses, according to Bloomberg.

” We continue to work diligently on this change,” Steward informed Bloomberg.

” Vendors that were used to receiving a payment in 30 days were waiting 90 and in some cases more than that,” Mr. Green stated. “It snowballed to where we were struggling to get products in a timely way.”.

Jonathan Jamoulis, a co-owner of Cape Cod Cafe, stated his dining establishment stopped delivering pizzas to Brockton, Mass.-based Stewards Good Samaritan Medical Center due to the fact that Steward would not pay till 6 months had passed and thousands of dollars in bills piled up, according to the report..

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Thursday, August 6th, 2020
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Mike Green, who worked as controller for three of Stewards Ohio hospitals in 2018, informed Bloomberg that Steward instructed personnel to postpone payments to suppliers in an effort to improve its short-term capital..

Late payments from Dallas-based Steward Healthcare to its suppliers, such as marketing firms and suppliers, were not simply oversight, a number of former system financing workers informed Bloomberg..

More articles on health care financing: Illinois health system lays off 10% of workforceHow much CARES Act cash went to HCA, CHS + UHS in Q2Tenet to end some inpatient services at 2 Massachusetts hospitals.

Steward informed Bloomberg its billing disputes with vendors have actually been fixed. It likewise said the hold-ups show the trouble of integrating payment systems into the healthcare facilities it bought, as numerous are typically in financial distress.

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