BOSTON — A Massachusetts-based military healthcare provider has filed a lawsuit against beleaguered Steward Health Care, saying it wants to seek a new service provider for local military members, veterans, and their families.
Brighton Marine Inc., in its lawsuit filed Thursday in U.S. Bankruptcy Court in Houston, alleges that Steward’s financial difficulties forced them to end a contract under which Steward is to provide care for some of the 15,000 Department of Defense beneficiary patients currently using the Brighton-based company’s health care services.
Brighton Marine says it had earlier subcontracted with Steward. Under that subcontract, under the “Amended and Restated Management and Services Agreement,” Steward provides military servicemembers, veterans, and their families with covered health care benefits and pharmacy benefits, the lawsuit states.
However, according to the lawsuit, “In the past six months, public reporting revealed that Steward’s financial health was shaky, at best. Mounting debts, unpaid rent, and insufficient revenues called into question Steward’s ability to continue performing its responsibilities under the MSA and to continue delivering the health care benefits to the servicemembers who rely on Steward for their care.”
Steward is now interfering with Brighton Marine’s “efforts to ensure an orderly transition to a new provider,” the lawsuit states.
The lawsuit claims that Steward has been unresponsive to Brighton Marine as it attempts to transition to a new administrator. Brighton Marine “requested multiple meetings” with Steward to facilitate this, according to the lawsuit.
In response to those requests, “Steward delayed. It did not respond to some requests for meetings. It cancelled others after agreeing to meet. And, at times, it simply did not show up at all,” the lawsuit states.
Earlier this month, Steward announced its plan to sell all of its hospitals by the end of the summer. Its 31 hospitals across the country will be auctioned off at the end of June.
The for-profit company filed for bankruptcy protection on May 6. It was revealed in bankruptcy court yesterday that it has $9 billion dollars in liabilities.
Steward Health Care declined to comment on the lawsuit.
Read the lawsuit in its entirety below:
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