Steward Health Care, a hospital group based in Massachusetts, announced on Monday that it would be filing for bankruptcy. The company operates nine facilities in the state and is facing significant debt. In response to this, Steward has initiated a Chapter 11 restructuring process through the U.S. Bankruptcy Code by submitting petitions in the Southern District of Texas.
Despite the bankruptcy filing, Steward stated that it was working on finalizing details of debtor-in-possession financing from Medical Properties Trust, with an initial funding of $75 million and an additional $225 million available upon certain conditions being met. This financing will help Steward continue its operations without interruption and ensure that patients receive the necessary care they need.
Dr. Ralph de la Torre, CEO of Steward, explained that filing for Chapter 11 restructuring was the best decision for the company, its patients, physicians, employees, and the communities they serve. This decision will allow Steward to reorganize itself and emerge stronger than ever before.
The Massachusetts Nurses Association expressed concern over the bankruptcy filing and urged residents to prioritize the voices of caregivers and patients during the reorganization process. They emphasized that patients’ needs must come first in any restructuring plan.
Matt Schooley, a digital producer at CBS Boston who has been with WBZ News for over a decade, reported on the bankruptcy filing and shared his insights into what it means for healthcare in Massachusetts moving forward. He believes that this news could have far-reaching consequences for healthcare providers throughout the state but emphasized that he remains optimistic about how healthcare will evolve in response to this challenge.
