Steward Health Care Files for Bankruptcy and Plans to Auction Off U.S. Hospitals Amidst Allegations of Mismanagement and Unpaid Bills

Steward Health Care, which is headquartered in Dallas, recently filed for bankruptcy and announced plans to sell all of its U.S. hospitals. The company owns 31 hospitals across the country, including nine in Massachusetts, and aims to auction off its assets to pay down its $9 billion debt. Despite the bankruptcy filing, both the company and Massachusetts officials have assured that there will be no disruptions to daily operations at the hospitals.

Steward’s attorney mentioned during a bankruptcy hearing that the company hopes to keep all hospitals operational in the long term. The auctions for the hospitals are scheduled for June 28 for locations outside of Florida and July 30 for the Florida hospitals. Massachusetts Governor Maura Healey has condemned the situation, attributing it to greed, mismanagement, and lack of transparency on the part of Steward’s leadership in Dallas. Governor Healey has set up a hotline and website for patients seeking information or assistance regarding the bankruptcy.

A CBS News investigation highlighted unpaid bills and potential supply shortages in Steward’s hospitals. The investigation attributed these issues to a lack of transparency on the part of Steward’s leadership in Dallas, as well as poor management practices. Governor Healey has called on federal regulators to take action against Steward Health Care and protect patients from harm caused by this financial crisis.