Steward Health Care, a hospital group that operates nine facilities 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.
According to Steward, this voluntary step will allow them to continue providing necessary care to patients without any disruptions in day-to-day operations. The Massachusetts Nurses Association expressed concerns about the potential devastating consequences for residents in the affected areas due to the bankruptcy filing. However, Matt Schooley, a digital producer at CBS Boston, reported on the situation and highlighted how the reorganization process provides an opportunity for stakeholders to prioritize the voices of caregivers and patients.