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REVEALED: Steward Hospital System Spent $4 Million on Private Spy Firm to Harass Critics

In a shocking revelation, it has emerged that the Steward Healthcare System, which filed for bankruptcy earlier this year, spent over $4 million on a private spy firm to gather intelligence on its critics and employees.

Tactics Used by Spy Firms went Beyond Ethical Permissible Limits

According to documents obtained by OCCRP, the hospital system used its Malta subsidiary, Steward Malta Management Limited, to pay bills from the UK-based CT Group and US-based Audere Research Company. The firms were hired to investigate and gather information on individuals who had criticized the hospital system or were considered a threat to its operations.

• Tactics used by the spy firms went beyond what is ethically permissible in business intelligence.
• Security expert Ira Winkler described the surveillance as “beyond the lines” and potentially illegal. “Following people, surveilling someone, that’s harassment,” he said.
• Whistleblower lawyer Mary Inman echoed Winkler’s concerns, stating that it is unacceptable for a hospital system to use its resources to gather compromising information on employees or critics.

Steward Healthcare System Denies Wrongdoing

Steward Healthcare System denied any wrongdoing, stating through lawyers that it takes compliance obligations seriously and acts in accordance with them. However, documents show that the company prioritized paying its intelligence bills over paying critical costs, such as doctor fees and hospital supplies.

• Despite financial struggles, Steward continued to prioritize its intelligence-gathering efforts.
• One executive voicemail revealed that the company relied on these services for “truly existential work.”

Investigation Findings

The investigation was carried out by OCCRP’s Data Team and Fact-Checking Desk, with data expertise provided by OCCRP’s Data Team. The story is a collaborative effort between OCCRP, the Boston Globe, and Times of Malta.

Correction: This story has been updated to more accurately reflect the nature of Crowe’s work for Steward and to correct the name of the law firm Mary Inman works for.