Justice Department confirms receipt of letter calling for investigation into Steward

Back in May, 21 News reported that local Congressmen and U.S. Senators have called on U.S. Attorney General Pam Bondi to ask the U.S. Department of Justice to open an investigation into the circumstances that led to the closures of both Insight-owned hospitals in Trumbull County.

Now, a representative for U.S. Senator and former Lieutenant Governor Jon Husted tells 21 News the Justice Department has confirmed receipt of the letter and Senator Husted is awaiting a response.

The letter was penned by Husted alongside Valley Congressmen Mike Rulli and David Joyce. The letter accuses Steward Health, the former owner and operator of Trumbull Regional Medical Center and Hillside Rehabilitation Hospital of Medicare and Medicaid fraud.

Insight Health Systems took over both of those hospitals in October of 2024. It would require about six months for Insight to secure its Medicare and Medicaid licenses from Ohio.

"However, Steward reportedly broke this sale agreement by imposing millions of dollars in administrative charges on the hospitals and preventing millions of dollars in income from reaching the facilities, according to a memo that was distributed to staff notifying them of the hospitals' closures. It was also claimed that there may have been instances of Medicare and Medicaid fraud or abuse in connection with the operations of these hospitals, all leading to the closure of the Trumbull Facilities," the letter reads.

The letter also asks the Justice Department to look into:

- The integrity and accuracy of Medicare and Medicaid billing practices during that time period

- Whether federal funds intended to support patient care were misused, diverted or fraudulently reported

- The financial and operational decisions made by the parent company or management entities during the hospital ownership transition process and months leading up to the closure

You can read more about the letter and the hospital closures in our related coverage below.

RELATED COVERAGE:

Valley legislators ask DOJ to investigate closure of Insight hospitals in Trumbull County

Warren Mayor calls on criminal investigation of Steward Health for alleged Medicare fraud