WARREN – Mayor Doug Franklin wants Steward Health Care investigated by the Ohio Attorney General for withholding Medicaid payments from Insight Hospital and Medical Center Trumbull.
Steward, the for-profit private-equity operators of the hospital prior to filing for bankruptcy in May 2024, reportedly has been withholding Medicaid, Medicare and other government funds deposited as payment for hospital services rendered. Presumably, the money is going to pay vendors and other debts from the bankruptcy.
Williams adds these activities of Steward are “crippling” the efforts by Insight Health Care, which took over the hospital operations in October 2024, through the bankruptcy.
The loss of those funds, Williams said, has directly led to the Trumbull hospital to close its doors, put services on diversion and furlough employees.
“Since taking over Insight Trumbull and converting it back to a nonprofit, Insight has invested over $30 million of its own funds into Insight Trumbull to turn the hospital around and correct the issues created by Steward,” writes Williams in a letter to Attorney General David Yost and released to the media on Monday.
Williams said it is the understanding that the restriction of bank accounts and specifically withholding the Medicaid payments is illegal and he asks for the state’s Medicaid Fraud Unit to investigate Steward’s practices.
“We share a common goal with Insight Trumbull to bring services back, bring employees back to work and make sure the community has access to quality healthcare,” Williams wrote. “This goal can only be achieved with Insight Trumbull having access to funds to operate the hospital.”