POLITICO Massachusetts Playbook: The fallout from Healey’s ‘hiring controls’

 

BY LISA KASHINSKY , KELLY GARRITY AND MIA MCCARTHY Presented by  DON’T CALL IT A HIRING FREEZE — Maura Healey kept insisting the state of the state’s finances was fine. The governor countered months of slumping tax revenues by touting Massachusetts’ “excellent” bond rating and strong reserves. She traversed the state to sell her administration’s “transformative investments” in child care, education and transportation. But back on Beacon Hill, each fiscal move she made betrayed her concerns. Healey cut $375 million from the budget in January and tapped $625 million in non-tax revenues to plug the rest of what was projected to be a billion-dollar shortfall. She built her next budget on flat tax-revenue projections and paired $2 billion more in spending with nearly $1 billion in cuts while also proposing new revenue sources. And on Wednesday, she paused executive-branch hiring through the end of June — with a warning that the restrictions could extend beyond that. Healey insists she’s “not imposing a hiring freeze.” Her administration claims that’s because not every job is going unfilled — some 200 positions, including in public safety and direct care, are exempt. Hiring for seasonal jobs and returns from leave are continuing. And agencies can apply for waivers. But the memo her human resources chief sent to Cabinet secretaries and agency heads on Monday telling them to “immediately pause their hiring processes, including scheduling any new interviews or extending offers” — and to apply for waivers for current job postings by 5 p.m. on April 16 — is strict. “What we’re asking our agencies to do is follow hiring controls to make sure that we’re making the best decisions in terms of spending money for the rest of the fiscal year because I have an obligation to manage within budget,” Healey told reporters at an unrelated event on Wednesday. Gov. Maura Healey is pitching her budget for the next fiscal year while trying to rein in spending in the current one. | Joshua Qualls/Governor's press office courtesy photo Democratic legislative leaders took Healey’s latest move in stride . “[We’re] not surprised. We’ve been watching our spending probably for a year,” House Speaker Ron Mariano told Playbook. Senate Ways and Means Chair Michael Rodrigues said in a statement that a hiring freeze is “not at all unusual, given the overall current revenue picture. We see it as a responsible and prudent move.” But Healey’s critics are still pouncing on the state's precarious fiscal position — and what they view as the governor’s seeming reticence to publicly address the full extent of the state’s money woes. “If the governor believes that the commonwealth is facing an economic downturn that would necessitate such a freeze, she should communicate to the public what she believes is the cause of the revenue shortfall and outline how the commonwealth will protect critical investments,” Progressive Massachusetts’ Jonathan Cohn told Playbook. Progressives seized on the halted hiring to raise concerns that Healey’s billion-dollar tax-relief package was costing the state at a crucial moment by easing up taxes on the wealthy and corporations (while also aiding renters, seniors and families). And they argue the lost revenue could potentially affect the governor’s ability to act on her other priorities. The hiring pause is “very concerning because, to Governor Healey’s credit, she’s laid out a bold agenda on housing, on climate action, on economic development,” state Sen. Jamie Eldridge told Playbook. “The reality is: If you don’t have the employees, especially people that are really experts in these areas, you’re not going to be able to implement that vision.” But Lt. Gov. Kim Driscoll told The Boston Globe the administration has no regrets in moving forward with the tax-code changes. MASS GOP provides the predictable childish  soundbyte without details. NEVER FACTS! What's the COST? What's the cost of the TAX CUTS?  Meanwhile, the MassGOP is blaming the situation on Healey’s pricey expansion of the upper echelons of state government and calling on her Cabinet secretaries to return the raises they received earlier this year . The one bright spot in this fiscal doom and gloom: Tax collections came in above benchmark for the first time in eight months. Revenues were $182 million more this March than the same month last year, and $129 million above benchmark. But collections were still running $145 million behind year-to-date projections heading into the all-important month of April. GOOD THURSDAY MORNING, MASSACHUSETTS. Is your job being affected by Healey’s new hiring rules? Email us:  lkashinsky@politico.com  and  kgarrity@politico.com . TODAY — Healey meets with Ambassador Alexander Yui of Taiwan at 10 a.m. at the State House. Boston Mayor Michelle Wu speaks at BPS’ Red Sox Hat Day at 9:30 a.m. in East Boston and attends a ribbon-cutting ceremony at BHA’s Lenox Apartments at 11 a.m. Rep. Ayanna Pressley holds a campaign rally at 5:30 p.m. at the IBEW Local 103 in Dorchester.   A message from NextEra Energy: With a presence in 49 states, NextEra Energy is one of the nation’s largest capital investors in infrastructure, creating thousands of jobs and generating millions of dollars in new tax revenue for communities across the U.S. We generate more electricity from the wind and sun than anyone in the world as we work toward securing America’s energy independence and security with clean and emission-free low-cost energy.   DATELINE BEACON HILL — “Governor’s Council approves Healey’s blanket pardon for marijuana possession convictions,” by Matt Stout, The Boston Globe: “A state panel on Wednesday approved Governor Maura Healey’s blanket pardon of marijuana possession convictions, an action state officials believe could provide forgiveness for tens of thousands of people — and possibly more — convicted of misdemeanor offenses that, under current law, would no longer be a crime. The sweeping move applies to all adult state-level possession convictions handed down before mid-March of this year, forgiving criminal records that officials and advocates say have blocked some residents from getting housing, finding a job, or seeking an education. The Governor’s Council approved the proposal, 7-0, on Wednesday following a roughly 90-minute hearing in which no one spoke against the measure.” “Massachusetts made history today,” Healey said in a statement. “I want to thank President Biden for his leadership on this issue, and I’m proud that Massachusetts was able to answer his call to action in this momentous way." — “Massachusetts searches for new Department of Correction Commissioner,” by Deborah Becker, WBUR: “The state Executive Office of Public Safety and Security said the governor's office is 'finalizing plans to establish a comprehensive search process' to identify and review prospective candidates for the next commissioner.” — “Less surveillance, more support: New leaders bring new approach to Mass. parole and probation,” by Paul Singer, GBH News: “Pamerson Ifill, the state’s new probation commissioner, is the first Black man to fill his position. Angelo Gomez, the new head of parole officers, is also the first person of color to hold his job. Now the two state officials — who say they grew up on the other side of law enforcement — want to change the departments that have long been seen by many as part of state-funded punishment.” FROM THE HUB — “Boston city councilor opposes Mayor Wu’s plan to raise commercial tax rates,” by Gayla Cawley, Boston Herald: “Boston City Councilor Ed Flynn came out in opposition to the mayor’s proposed plan to raise property taxes on businesses beyond the state limit, saying that such a move would negatively impact an already struggling downtown office market.” — “Boston pushing for 15-20 mph citywide speed limit after pedestrian deaths,” by Gayla Cawley, Boston Herald: “In the wake of two pedestrian fatalities, including the death of a 4-year-old girl, over the past week, the Boston City Council plans to explore a citywide reduction of the speed limit from 25 to 20 mph to enhance street safety.”   Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more .     YAHD SIGNS AND BUMPAH STICKAHS FLASH IN THE PAN CAIN!  Can't decide which PARTY he belongs to, FLIP FLOPPER....No NAME RECOGNITION.... CAIN’S CASH DASH — Quincy City Council President Ian Cain is looking to raise $120,000 to help him get on the ballot against Sen. Elizabeth Warren , according to a donation-solicitation email sent on Wednesday and obtained by Playbook. “In Massachusetts it takes 10,000 signatures to get on the ballot which will cost us roughly about $120,000 in outreach & door knocking etc. Would you consider an initial contribution to help us get on the ballot?” reads the email from Rebecca Schieber, a managing director at GOP consulting firm Targeted Victory who lists herself as a “senior advisor” to Cain’s Republican campaign-in-waiting. The message also includes a link to Cain’s WinRed page and a red-white-and-blue logo that reads “Ian Cain for Us.” Cain only has about a month left to collect signatures. But he declined to say whether any donations would pay for staff to help gather those names. “We are committed to getting on the ballot in a much shorter timeframe than the other candidates," Cain said in an email to Playbook. "[B]ut of course this is a significant endeavor." PEAKE’S PICK — Outgoing state Rep. Sarah Peake is backing Hadley Luddy to succeed her in representing the 4th Barnstable District. “Simply put, she has what it takes,” Peake said of Luddy, a Democrat who’s the CEO of the Homeless Prevention Council on the Cape. It’s unclear who Peake wants to see take over her post as second assistant majority leader.   A message from NextEra Energy:     FROM THE DELEGATION EMPTY SEAT — Sen. Ed Markey hosted his field hearing on the problems with for-profit health care on Wednesday with one notable absence: Steward Health Care CEO Ralph de la Torre . But Markey and Sen. Elizabeth Warren , who also participated in the hearing, saved a seat for the embattled chief executive even after he declined an invitation to attend. “Shame on Dr. de la Torre,” Warren said during the hearing at the State House. “He owes the residents of Massachusetts an explanation for his part in looting Steward hospitals. His refusal to appear at today's hearing is cowardly.” Throughout the two-hour hearing on the impact of private equity in health care, the senators heard testimony from doctors and nurses under Steward-owned hospitals, plus a private equity researcher. But they also took the opportunity to skewer de la Torre — who owns two yachts while the system he oversees is on the brink of bankruptcy — for “prioritizing corporate greed” over patient health care. THERE'S MORE!  A former supporter commented that he owns  LUXURY PROPERTIES not yet explained,  also owns 2 jets!  See next post!  “Dr. de la Torre promised to deliver really good health care , but he failed. He failed the health providers, he failed communities, he failed to show up here today to answer even the most basic questions about what he has done,” Markey said. “Dr. de la Torre’s chair is as empty as the promises he made to the public.” The senators also used the opportunity to unveil new proposals to strengthen oversight of private money in health care, including legislation that would put restrictions on investors buying health care companies and ban real estate purchases that would destabilize health care operations.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW .     FROM THE 413 — “Springfield mayor, MGM executives meet to talk about possible casino sale,” by Jeanette DeForge, Springfield Republican: “Mayor Domenic J. Sarno said he met on Wednesday with Bill Hornbuckle, president and chief executive officer of MGM International, and Louis Theros, chief operating officer of the city’s casino, about the discussion about a possible sale of MGM Springfield. Sarno did not reveal any details of the conversation. ‘This is an ongoing process and there will be further communication and dialogue with regards to any possible sale,’ he said in a statement.” WHAT ELSE YOU SHOULD BE READING — “Surreptitious simulation,” by Dan Atkinson, BINJ: “Earlier this year, the Massachusetts State Police announced that it was looking to pay up to $1 million to covertly intercept cell phone information and track locations through a controversial device that civil liberties advocates say can suppress free speech and lead to questionable prosecutions. Months later, the department purchased one such cell-site simulator. … [S]tate Sen. Jamie Eldridge, chair of the Joint Committee on the Judiciary, agreed with [concerns from] civil liberties advocates and said he planned to investigate and take action to create government oversight.” — “Facing delays, MBTA says Worcester’s Union Station’s new platform opens this spring,” by Adam Bass, MassLive. — “Plan to turn former Cape Cod nursing home into family shelter sparks concern amid migrant crisis,” by Lance Reynolds, Boston Herald. A plan to convert a former Cape Cod nursing home into a “family transitional shelter” is sparking concerns from officials and residents around safety, transparency and whether the facility will be turned over to migrants. Housing Assistance Corp., a regional-based nonprofit, is looking to morph its three family shelters in Hyannis, Bourne and Falmouth into one central space at a former nursing home in Dennis. The shelter would provide living space for up to 79 homeless families, mostly single mothers with infants and young children, and lessons on “life skills,” with the goal of getting them permanent housing, project leaders have said. But as the migrant crisis continues to slam the Bay State, Dennis residents are looking for assurances from leaders that the planned shelter would be solely for Cape Cod residents most in need. So far, however, they say they’re not confident. “They are not being clear at all about who these people are,” Dennis resident Tom Rennell told the Herald on Tuesday. “We can’t ask them where they come from. We are concerned that these aren’t citizens of Cape Cod, these aren’t legal immigrants. … It’s certainly taking on the appearance of that.” Rennell’s comments came after the Dennis Planning Board blocked residents from speaking during a Monday meeting in which leaders explained the project and how they believe it fits the criteria of the Dover Amendment – a state statute that exempts agricultural, religious, and educational uses from certain zoning restrictions. Rennell is part of a group dubbed ‘Cape Cod Concerned Citizens’ that holds protests against how the state is handling the migrant crisis. Tenants would be required to take lessons on financial management, family planning, MassHealth enrollment, housing search, parenting, cooking and other educational interventions, said Peter Freeman, an attorney for Housing Assistance Corp. “Those are the types of things that all of the residents have to participate in,” Freeman told the Planning Board. “In fact, they sign an agreement to that effect, that they’re not just there for living purposes, they’re there for educational training purposes.” “The whole point is to learn life skills,” he added. Leaders in February highlighted how the 79 Cape and Islands families residing at the existing sites in Hyannis, Bourne and Falmouth would be relocated to the 57,000-square-foot facility in Dennis, which they anticipate happening later this year. Families would also learn how to set up a savings account, how to restore credit and “how to be a good client,” Housing Assistance CEO Alisa Magnotta said during Monday’s meeting. “They have been productive members of society,” she said of the families who’d be moving in before she showed images of previous clients. “This isn’t ‘Those people.’ This is ‘Us.’ These are Cape Codders. These are our friends, these are our families.” In a “Frequently Asked Questions” section on the organization’s website, officials say the endeavor is part of a “long term strategic planning that predates the immigration crisis.” “Once it is open, this new family shelter will serve as a stable, supportive home for families, many with deep roots on Cape Cod, who need our help on the path to permanent housing,” the section states. “There is already the possibility of migrant families staying in our shelter if they qualify based on current state housing laws and admission standards, which we are required to follow.” A nearby motel, Harborside Suites in Yarmouth, has been thrust into the spotlight of the Massachusetts migrant crisis as it’s provided shelter for more than 20 migrant families since last September, violating a local bylaw that limits temporary stays to less than 30 days. In a letter to U.S. Sens. Ed Markey and Elizabeth Warren and Rep. Bill Keating last September, Magnotta shared concerns around how the migrant crisis pushed her agency’s operations to a “breaking point.” Magnotta, in the Sept. 18 letter, called on the lawmakers to “secure the resources needed to assist the arriving migrants,” “fast-track work visas for new arrivals,” and to “dedicate funds for housing creation.” The Cape Cod Times reported last October that One Love Lane South Dennis LLC sold the nursing home, South Dennis Healthcare, to Housing Assistance Corp. for $4.3 million, according to a deed recorded with the Barnstable County Registry of Deeds on Sept. 28. Magnotta, in a statement posted on the agency’s website in February, explained how “The nursing home operator was challenged by a workforce shortage exacerbated by the lack of attainable housing on the Cape – the same housing crisis that is forcing many families to turn to shelters.” Nursing home staff relocated 82 residents in just over a month after the sale and before it closed last fall. If the Dennis facility comes to fruition, families would live in 272-square-foot rooms featuring a half-bathroom, refrigerator and microwave, and they’d share a communal kitchen and shower. The rooms, with a maximum capacity of family members, would lack televisions and chairs, officials have said. Average stays are about nine months to a year, they’ve added. “The rooms are too small, the communal kitchens are cumbersome,” Planning Board member Rich Hamlin told the project proponents. “As far as I can see, there’s just way too many unanswered questions in this project, and I don’t even believe it should be in front of this board.”   A message from NextEra Energy: Leading America with safe, reliable and affordable clean energy The need for reliable, low-cost clean energy in America has never been greater – and NextEra Energy is ready to deliver it. Millions of Americans depend on us to power their lives in good weather and bad. By investing in resilient, storm-tested infrastructure and harnessing innovative technology, we’re keeping reliability high and bills low. We are also working toward securing America’s energy independence and security with clean and emission-free low-cost energy. We’ve virtually eliminated foreign oil from our power plants and, today, generate more electricity from the wind and sun than anyone in the world – while continuing lead in battery storage technology.   MEANWHILE IN NEW HAMPSHIRE — “New Hampshire state Sen. Becky Whitley forms exploratory committee as she considers 2nd District run,” by Adam Sexton, WMUR. HEARD ‘ROUND THE BUBBLAH TRANSITIONS — Joe Bernardi has joined Foley & Lardner’s Boston office. HAPPY BIRTHDAY — to former Sen. Mo Cowan, Michael Forbes Wilcox, former Springfield City Councilor Jesse Lederman and Sam Doran of SHNS. Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com .   Follow us on Twitter Lisa Kashinsky @lisakashinsky Kelly Garrity @KellyGarrity3   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our politics and policy newsletters FOLLOW US

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Markey, Warren light Steward on fire at private equity in health care hearing

 

Markey, Warren light Steward on fire at private equity in health care hearing 

Sens. Ed Markey and Elizabeth Warren slammed Steward Health Care and its CEO Ralph de la Torre — who was a no-show — on Wednesday at their hearing about the impact of private equity on the questionable care, finances and future of Steward's nine Mass. hospitals. Markey publicized a bill he filed, the Health Over Wealth Act, which would enable federal regulators to bar private equity investments in health care by companies "engaged in price gouging, understaffing or creating barriers to care," reports the Globe's Travis Andersen. — Boston Globe | State House News Service

State House News

South Shore Hospital already disrupted by Steward's woes

 




excerpt:

South Shore Hospital already disrupted by Steward's woes

The rare Congressional hearing held Wednesday at the State House was meant to showcase what happens when the private equity world gets involved in health care. But another example of the real-world impact of the slow-burning Steward Health Care crisis came this week in a more familiar place: a dense financial document.

Steward's Massachusetts hospitals "are in deep financial distress and appear to be in danger of closure because of years of mismanagement, private equity schemes, and executive profiteering," U.S. Sens. Ed Markey and Elizabeth Warren said last month. The for-profit health system's financial woes have created the potential for hundreds of thousands of Bay Staters to face disruption accessing care, and have required state government to plan for various contingencies.

And Steward's problems are already affecting operations at South Shore Hospital, the South Weymouth acute care hospital that has one of the four busiest emergency rooms in the state. The sudden closure of Signature Brockton Hospital (about eight miles away) due to a February 2023 electrical fire and the "ongoing financial instability" of Steward's Good Samaritan Hospital in Brockton "materially disrupted" South Shore Hospital, Fitch Ratings said this week.

"Instability in these local hospitals has caused unprecedented volume increases at SSH, particularly in its ED and its obstetrics departments, and the hospital is running approximately 100 temporary medical/surgical beds to respond to the increased demand," the rating agency said. "While this resulted in year-over-year revenue growth of 6.5% in fiscal 2023, it has come at the expense of additional agency/premium labor cost to staff the additional beds."

The rating agency also addressed another pending shakeup in the region's health care world — the split between the Dana Farber Cancer Institute and Brigham & Women's Hospital — and how it might impact South Shore Hospital, which operates a Weymouth community cancer center as part of a joint venture with both BIDMC and Dana Farber.

"Fitch expects the scope of its agreement with BIDMC to be limited to operations in downtown Boston and not to negatively affect operations at SSH's community cancer center," the agency said. — Colin A. Young