Following Aftermath of Steward Health Bankruptcy in Massachusetts, Sen. Markey Leads Colleagues to Demand Labor Dept. Retract Rule Allowing Private Equity Investments in 401(k)s

Letter Text (PDF)

Washington (June 2, 2026) - Senator Edward J. Markey (D-Mass.), top Democrat on the Health, Education, Labor, and Pensions (HELP) Subcommittee on Primary Health and Retirement Security, along with Senator Elizabeth Warren (D-Mass.) and Congressman Stephen Lynch (MA-08), wrote to Keith Sonderling, Acting Secretary of the Department of Labor (DOL), raising the alarm for a proposed rule that would expose Americans' retirement savings to greater risk by opening the door to expanded private equity investments in 401(k)s and other retirement plans. This extractive private equity model has led to the collapse of Steward Health Care, hospital closures, mismanaged nursing homes, and rising costs for firefighters across the Commonwealth.

In the letter, the lawmakers wrote, "We are concerned that DOL is opening up Americans' hard-earned retirement savings to risky private equity investment at a time when global private equity fundraising has been at its lowest level in a decade, shrinking by 11 percent in 2025 alone. Beyond the risks to individuals' retirement savings, the proposed rule threatens broader aspects of life in Massachusetts. Unfortunately, Bay Staters are no stranger to the damaging effects of unfettered private equity firms on hospitals, health care systems, supplies chains for municipalities, housing, and other critical areas across the Commonwealth. The gutting and collapse of Steward Health Care, owned by private equity firm Cerberus Capital Management, is one of the most prominent examples of private equity mismanagement with a wide impact."

The lawmakers concluded, "The DOL should not promulgate a rule under which workers may have their retirement savings used to underwrite a model of finance that actively exacerbates the affordability crisis in Massachusetts. Likewise, DOL should not allow workers to have their savings used to supercharge a model that makes their financial outlook more precarious. We urge you to withdraw this proposed rule to ensure that the hard-earned retirement savings of Americans are protected with the full weight of ERISA, as Congress intended."

In October 2025, Senator Markey introduced the Stop Medical Profiteering and Theft (MPT) Act, legislation that would put regulatory guardrails in place to protect health systems from predatory leaseback deals with real estate investment trusts (REITs). Steward Health Care declared bankruptcy after being tied to unsustainable rents charged by a REIT, Medical Properties Trust. Many REIT leases include automatic, expensive rent increases that can lead to health systems diverting resources away from patient care to rent payments or, in some cases, bankruptcy.

In September 2024, Senator Markey released his report, "The Steward Health Care Report: How Corporate Greed Hurt Patients, Health Workers, and Communities," which spotlighted patient and worker experiences, hospital quality data, and information on hospital closures in Massachusetts and around the country due to Steward's mismanagement. That same month, Senator Markey fought to have the Senate vote to refer Steward Health CEO Ralph de la Torre for criminal contempt, which it did unanimously, for failing to respond to a subpoena issued by the Senate HELP Committee. In September 2025, Senator Markey wrote a letter to U.S. Attorney General Pam Bondi urging enforcement of the Senate's criminal contempt referral of Dr. de la Torre.

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