Payroll Pause: Steward Health Care Struggles with Financial Uncertainty, Promises Swift Payment Resolution

Yesterday, several employees of Steward Health Care, the owner of hospitals in Brockton, Taunton, and Fall River, were left without their paychecks. The company filed for Chapter 11 bankruptcy recently, and Steward Health Care President Mark Rich explained that the delay in payment was due to a processing error within the Bank of America system. He assured employees that payroll and benefits for all team members were funded and would show in their accounts within the next 24 hours.

In an email shared with employees at 8 a.m. this morning, Rich expressed his apologies for the inconvenience caused by the error. He stated that they had followed all of Bank of America’s procedures after filing for bankruptcy and were assured by them that such delays would not occur. State officials are aware of the situation and have confirmed that employees will receive their checks by Thursday or Friday.

Steward Health Care currently employs over 30,000 individuals at more than 30 hospitals across the U.S., with eight in Massachusetts. The company’s financial situation has raised concerns, leading to the bankruptcy filing. Amidst this financial crisis, employees are facing uncertainty about their paychecks; however, Steward Health Care is working diligently to resolve this issue promptly.

A spokesperson for Bank of America issued a statement stating that they were aware of the issue and apologized for any inconvenience it may have caused to Steward Health Care’s employees. They also assured that they were working closely with Steward Health Care to resolve the issue as soon as possible.

As a result of this incident, many employees are concerned about their ability to make ends meet until they receive their paychecks. However, Steward Health Care is committed to ensuring its workers receive payment promptly and is exploring alternative options such as direct deposits or paper checks if necessary.

The company’s bankruptcy filing has also raised questions about its future plans regarding expansion or acquisition opportunities in Massachusetts or other states where it operates hospitals.

It remains unclear what led to Steward Health Care’s decision to file for Chapter 11 bankruptcy but it is clear that this incident will have long-term consequences on both employees and shareholders alike.