Steward Health Care Files for Bankruptcy Amidst Governor’s Concerns and Uncertainty in the Health Care Sector

Steward Health Care, a physician-led hospital operator and one of the largest for-profit health care systems in the U.S., filed for bankruptcy early Monday morning. The company stated that it will continue to operate its 32 hospitals, including eight in Massachusetts, while restructuring its finances under court supervision. Steward is still finalizing the terms of the $75 million bankruptcy.

The financial crisis faced by Steward Health Care has caused concern, with Gov. Maura Healey calling the situation a “house of cards and a charade.” The health care network, which employs over 90,000 people in Massachusetts alone, has come under scrutiny as it navigates through this challenging time.

According to Dr. Ralph de la Torre, CEO of Steward Health Care, the decision to file for Chapter 11 restructuring is in the best interests of patients, physicians, employees, and communities. Steward assured patients and employees that there should be no disruptions in care during this process.

Health and Human Services Secretary Kate Walsh stated that the Healey-Driscoll administration is collaborating with Steward and potential partners to ensure an orderly transfer of ownership that protects access to care, preserves jobs, and stabilizes the health care system.