Steward Health Care, a hospital group based in Massachusetts, has announced that it will be filing for bankruptcy. The company operates nine facilities in the state and is facing significant debt. To address this issue, Steward is proceeding with 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 is working to ensure that there are no interruptions in day-to-day operations, allowing them to continue providing necessary care to their patients without disruption. To aid in this effort, Steward is finalizing details of debtor-in-possession financing from Medical Properties Trust, with an initial funding of $75 million and up to an additional $225 million upon certain conditions being met.
Dr. Ralph de la Torre, CEO of Steward, stated that filing for Chapter 11 restructuring was the best decision for the company and its stakeholders. He emphasized that the reorganization process would prioritize the voices of caregivers and patients as they work towards finding a solution to the financial challenges facing the company.
The Massachusetts Nurses Association has responded to the bankruptcy filing by highlighting potential consequences for residents and calling for more emphasis on patient care in the reorganization process. Matt Schooley, a digital producer at CBS Boston who has been part of WBZ’s news team for over a decade, reported on the bankruptcy announcement.