(Story updated at 5:40 p.m. Eastern.)
Steward Health Care, a Boston-based, private equity-backed hospital chain, is facing fines in Massachusetts for failing to file its financial statements on time.
All Massachusetts health systems and hospitals must file their financial results with the state's Center for Health Information and Analysis. The CHIA was established in 2012 as part of major healthcare cost control legislation to collect data from insurers and providers on their financial performance as well as healthcare prices, spending and costs.
Steward missed an April deadline, and started incurring a fine of $1,000 per week on June 29, according to Andrew Jackmauh, CHIA's deputy director of communications and external affairs. The fine is the maximum allowed under the law. Annual penalties cannot exceed $50,000.
The company also was late filing is fiscal 2013 results, which were due in April 2014. Steward didn't file the results until March of this year.
Hospitals must file quarterly information, while parent organizations report annually. Financial results for Steward's 10 individual hospitals are up to date through the first quarter of this year.
Steward is the only hospital operator not in compliance this year, Jackmauh confirmed.
The results on CHIA's website show that Steward's hospitals had a wide variation in performance in fiscal 2014. Quincy Medical Center, which was permanently closed last December, ended the year with a -57% operating margin. One other facility, Steward Carney Hospital, also was in the red with a -10.2% operating margin.
However, two of Steward's largest acute-care hospitals, 338-bed St. Elizabeth’s Medical Center in Brighton and 239-bed Holy Family Hospital and Medical Center in Methuen, had operating margins of 5.3% and 5.4%, respectively.
Despite the losses at Quincy and Carney, Steward's hospital business had a $41 million profit at the end of 2014, according to Brooke Thurston, a spokeswoman at Steward.
For fiscal 2013, Steward reported a $55 million operating loss on $2.1 billion in revenue, its annual report filed with CHIA shows. That compares to a $22.2 million operating loss on about $2 billion in revenue in fiscal 2012.
"All of our hospital-specific financials are filed with CHIA and are up to date,” Brooke Thurston, a Steward spokeswoman, said. “We have also submitted our unaudited hospital company financials. We are in the process of completing the audit of our overall company consolidated financial statements and we will submit them when they are ready."
In a September 2014 report on overall Massachusetts healthcare spending, CHIA found that total per capita healthcare expenditures increased just 2.3% in 2013 (PDF). That rate was above inflation but below the state target of 3.6%.
Moreover, commercial insurance premiums, benefit levels and member cost-sharing remained unchanged year over year.
But the state's biggest insurer, Blue Cross and Blue Shield of Massachusetts, and its largest physician group, Partners Community Healthcare, had the highest year-over-year spending increases, the report noted.