A recording of the CEO of South San Antonio’s Texas Vista Medical Center appearing to contradict the reason the hospital’s corporate owners gave for shutting it down is drawing scrutiny from Councilwoman Adriana Rocha Garcia.
CBS News analyzed the pending closure of Texas Vista in a Wednesday report, noting that owner Steward Health Care is shuttering the 375-bed facility — the South Side’s primary hospital — after purchasing it six years ago with the help of private equity investors. It’s scheduled to close May 1 after 40 years in business.
As part of Dallas-based Steward’s purchase, another firm called Medical Properties Trust bought the land and buildings, and Steward agreed to pay it $5 million in annual rent from Texas Vista’s operating budget, according to CBS.
Steward officials have said their decision to close the hospital was prompted by the cost of providing care when 25% of patients in the economically disadvantaged area can’t pay for the services they receive. In a statement to CBS, they noted that the purchase’s rental scheme was “absolutely not a factor.”
However, CBS reports that hospital CEO Jon Turton in a secret audio recording of a March “leadership meeting” mentioned the rental agreement with Medical Properties. During those comments, he acknowledged Steward was “trying to get out of lease obligations,” the news organization reports.
“I heard the recording this morning, and I was a bit shocked,” Rocha Garcia said. “I think it should be prompting us to say, ‘You know what, someone should be looking into this.'”
Rocha Garcia said she’ll push for state and federal lawmakers to investigate. She’s already made plant to ask State Sen. José Menéndez, D-San Antonio, about initiating some kind of probe before the clock ticks down on the Texas Legislative session.
In statements emailed to the Current, Steward officials said the company is legally obligated to continue paying rent on the Texas Vista’s property whether the hospital is open or closed. That means the lease wasn’t a factor in its decision to shut down spokeswoman Josephine Martin said.
Indeed, Turton’s comment on the recording came in answer to a question about why staff should continue upkeep of the facility even though it’s closing, Martin added. The CEO was explaining that it would be in Steward’s best interest to maintain the property so a buyer could take over the lease, she maintains.
“Anybody else would have closed that hospital years ago,” Martin added. “It’s just not sustainable.”
However, Rocha Garcia blasted Steward on its lack of transparency about its finances, saying the public has no option but to take the privately held company on its word.
She added that Texas Vista’s closure affects an already vulnerable population that will soon face longer hauls to get lifesaving medical assistance. The nearest hospital is roughly 15 minutes away, which could make a difference between life and death in event of a serious medical incident.
“I wish someone would look into this immediately since it means that people could die, that people will die,” Rocha Garcia said.
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This article appears in Apr 19 – May 2, 2023.
