Steward Health Care, which owns nine hospitals in Massachusetts, has filed for bankruptcy due to millions of dollars in debt. The company has initiated a Chapter 11 restructuring process through a filing in the Southern District of Texas. Steward is finalizing the terms of debtor-in-possession financing from Medical Properties Trust to provide initial funding of $75 million and up to an additional $225 million.
The bankruptcy filing is not expected to impact day-to-day operations, according to Steward Health Care. Dr. Ralph de la Torre, the CEO of Steward, expressed that the decision to file for Chapter 11 restructuring is in the best interest of patients, physicians, employees, and communities. The Massachusetts Nurses Association responded to the bankruptcy filing, highlighting the potential devastating consequences for residents in the affected areas. While the situation presents challenges, the reorganization process provides an opportunity for stakeholders to prioritize the voices of caregivers and patients.
Matt Schooley, a digital producer at CBS Boston, reported on the bankruptcy filing of Steward Health Care. He has been a member of the WBZ news team for the last decade.
