Steward Health Care System Harvard Case Solution & Analysis

Steward Health Care System


Steward Health Care system, a company founded in 2010 is based in New England. The company is known to be the second largest health care system in the country. The company has made swift growth by expanding from six hospitals to eleven hospitals. As of now, the company is serving millions of patients per annum in more than 100 communities. The company acquires capital from the capital management company known as Cerberus to stabilized six hospitals.

Case type:

The case study is based on the application of the model in the organization. The company has implemented Accountable Care Organization (ACO) model. The purpose of this model was to reduce the cost along with making improvements in the health care sector. The basic requirement of the model was the complete sharing of records and information. With the help of this model, the company would be able to decrease the chances of faults and the probability of replication in treatments. The four major elements of the model are access, sustainability, costs and quality.

Instead of accepting installments from CMS focused around the amount of services gave, ACO members accepted installments from the legislature focused around patient conclusions, which swayed medicinal services suppliers to lower the costs and enhance the nature of care.

Key facts:

The strategy followed by Steward Health Care System was to generate value for the patients. Moreover, the company is focused on the cost, access, quality and sustainability of care. The approach of the company to lead the market was based on improving the quality provided to the patients by enhancing the positive experience of patients.

By the year 2010, negotiations have been made between Caritas (health Care System) and Cerberus (a capital management firm) to make an agreement. There were more than 445 physicians employed in Caritas along with 1250 extra physicians. After the formation of Steward Healthcare System, Cerberus announced De La Torre to be the CEO of the company. By the end of 2010, Cerberus purchased Caritas with all its assets and liabilities through Stewards.


Constant data, alignment of issues, policies and procedures related to public were the major concerns about the implication of ACO model in Stewards. The company cannot do experiments with the image of its brand by just applying the Pioneer ACO model. The vision and mission of the company were based on serving the patients and make them Steward’s priority.

The second issue was the company’s ability to extract data from the government resources. The company was facing difficulty to get the data in terms of good quality and timely, as well. The company requires these data to make interventions timely along with measures to solve the health problems. 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.

Vulnerability in regards to elected sequestration and the provincial-floor wage index, which made up for erroneous installments from CMS to rustic suppliers, created attentiveness toward the management of Steward. Sequestration brought about expansive and extreme cuts in terms of budgets, which prompted vulnerability in the services industry for Health Care..................

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