Steward Health Care System Case Solution & Answer

Steward Health Care System Case Solution


The Steward healthcare system was the most known and second largest healthcare system. It was discovered in 2010 in New England. The company has driven its extreme growth by expanding its system from six to eleven. The company has implement the “Accountable are organization (ACO) Model” to improve the risks and reduce the costs in the healthcare sector. This model consists of four major element, i.e. access, sustainability, cost and quality. All of these elements promote the nature of the healthcare. The company is currently serving millions of patients in couple of communities. The organization secures capital from the capital administration organization known as Cerberus to balance out six medical clinics.(Nadolski, 2012)


Formation of Steward Health Care System

Steward’s inspiration or motivation behind the formation of “Steward medical care framework” was to offer top notch types of assistance to their patients in low potential costs. This is because of the fact that the nation had previously directed the clinical benefits in excessive costs. The steward primary subject behind the arrangement of the framework was to serve individuals of all classes and give the clinical options in the term of other costly Boston-based clinical offices. Steward wanted to implement the model that would provide the extreme focus on the quality, access, cost and sustainability of care provided by the company. The approach of this implementation was to improve the quality provided to the patients.

In 2010, the “Caritas health care system” and Cerberus has negotiated and made an agreement. After the formation of Steward Healthcare System, Cerberus declared De La Torre to be the CEO of the organization. Before the finish of 2010, Cerberus bought Caritas with every one of its resources and liabilities through Stewards. (See Appendix A)

Key Issues

  • The issues generated from the implementation of the model that was the main theme and motivation behind the steward formation was the alignment, policies and procedure issues. The company cannot perform the experiments by applying the model with its brand image.
  • Another risk or issue was the ability of company to extricate the data from the government resources. The company was facing the issues in terms of quality as well.
  • The data providing service by CMS was not up to the mark as the company has to bear the delay of 30 to 90 days to get access to any data for patients.
  • One more issue was the Sequestration achieved far reaching and outrageous cuts as far as spending plans, which incited weakness in the administrations business for Steward health care system.


Cerberus-Caritas Deal

In 2010, the Cerberus-caritas deal was made. The primary focus of decision of the caritas system investment was the confidence and motivation of the management of caritas. The two parties were engaged and agreed upon the several factors and agreements. The proposed agreement included the investment of about $400 million for future capital commitment and other features such as promotion of ethical considerations etc. The Dr.Torre explained the fact that it organization was more like a category buster than the organization with distressed system. Its main focus was to make the deal that is “more analogous to a venture capital deal as opposed to PE”…………………………

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