Massachusetts Hospital Giant Filing for Bankruptcy: What This Means for Patients, Employees and Communities”.
Steward Health Care, a hospital group operating nine facilities in Massachusetts, announced on Monday that it is filing for bankruptcy. The company is facing significant debt and will proceed with a Chapter 11 restructuring process through the U.S. Bankruptcy Code by submitting petitions in the Southern District of Texas.
Steward stated that it has secured 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. Despite the bankruptcy filing, Steward assured that there would be no interruptions in day-to-day operations, allowing them to continue providing necessary care to their patients without disruption.
Dr. Ralph de la Torre, the CEO of Steward, mentioned that filing for Chapter 11 restructuring was the best decision for the company, its patients, physicians, employees, and the communities they serve. He emphasized that this process would allow Steward to focus on providing quality care while addressing their financial challenges.
The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting the potential consequences for residents and emphasizing the need to prioritize the voices of caregivers and patients in the reorganization process. The association called on lawmakers and regulators to ensure that patients’ needs are protected during this time of uncertainty.
Matt Schooley, a digital producer at CBS Boston, reported on the bankruptcy filing and has been a member of the WBZ news team for over a decade. He noted that Steward’s financial struggles have been ongoing for several years now and have impacted many families across Massachusetts who rely on its services.
