Steward Health Care under federal investigation – NBC Boston

The US Department of Justice is investigating Steward Health Care for possible corruption in international business dealings, the insolvent hospital system confirmed on Thursday.

Steward spokeswoman Josephine Martin said in an emailed statement that they were aware of the investigation and were cooperating with it.

“As a matter of policy, Steward will not comment further on this investigation as it is ongoing,” she wrote.

A spokesman for the U.S. Department of Justice declined to comment.

The Boston Globe reports that the focus of the investigation is on possible violations of the Foreign Corrupt Practices Act, a law that prohibits U.S. companies and citizens, as well as foreign companies doing business on U.S. soil, from engaging in bribery and other corruption abroad.

U.S. Senator Elizabeth Warren introduced a bill on Tuesday morning to prevent future cases of “corporate greed” in the healthcare system, which she said led to the bankruptcy filing of healthcare provider Steward Health Care.

This is just the latest drama surrounding the crisis-ridden health care system that has its roots in the Bay State. The largest physician-run hospital operator in the US filed for bankruptcy in May. Governor Maura Healey said at the time that the situation was due to greed and mismanagement by a failed management team at Steward. She added that the bankruptcy proceedings should increase transparency and that Steward will “no longer be able to lie.”

Last Friday, state officials confirmed that the sale of Steward Health Care’s physician network to for-profit insurer Optum had fallen through, underscoring the uncertainty surrounding the bankrupt hospital system and the future of its hospitals and providers in Massachusetts.