Steward Health Care Files for Bankruptcy Amid Millions of Dollars in Debt

Steward Health Care, a hospital group based in Massachusetts, has filed for bankruptcy due to millions of dollars in debt. The company is seeking to restructure through a Chapter 11 filing in the Southern District of Texas. To provide initial funding, Steward is finalizing debtor-in-possession financing from Medical Properties Trust, with up to an additional $225 million available.

Despite the bankruptcy filing, Steward Health Care stated that it will continue providing necessary care to patients without any disruptions in day-to-day operations. Dr. Ralph de la Torre, CEO of Steward, expressed that this voluntary step is in the best interest of patients, physicians, employees and communities. The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting the potential devastating consequences for residents in the affected areas. While the situation presents challenges, it also provides an opportunity for stakeholders to prioritize the voices of caregivers and patients during the reorganization process.

Matt Schooley, a digital producer at CBS Boston who has been a member of the WBZ news team for over a decade, reported on the bankruptcy filing of Steward Health Care.