Steward Health Care’s Chapter 11 Bankruptcy: How the Financial Struggles of a Texas-Based Healthcare Company Put Five Local Hospitals in South Florida at Risk
In recent news, Steward Health Care, a Texas-based healthcare company, has filed for Chapter 11 bankruptcy. This filing has put five local hospitals in South Florida at financial risk, including Palmetto General Hospital, Hialeah Hospital, Florida Medical Center in Lauderdale Lakes, Coral Gables Hospital and North Shore Medical Center.
The nurses at Florida Medical Center in Lauderdale Lakes had previously protested in 2022 due to the financial difficulties faced by Steward Health Care. The company has now provided a link on their website with court filings and information related to the bankruptcy proceedings.
Steward Health Care stated that the bankruptcy filing is in the best interest of patients, physicians, employees and communities due to challenges in the healthcare industry such as insufficient Medicare and Medicaid reimbursement and rising labor and medical supply costs. The company reassured that all hospitals, doctors’ offices and facilities will remain open during the restructuring process.
Hialeah Mayor Esteban Bovo Jr. confirmed that both Hialeah and Palmetto hospitals will continue to provide service despite the bankruptcy filing. The Florida Agency for Health Care Administration also ensured that care at all Florida-based hospitals owned by Steward Health Care will remain consistent.
Steward Health Care has received $75 million in special funding to sustain patient care services and is seeking a bailout to overcome their financial challenges. The first federal hearing on the bankruptcy filing is scheduled for Tuesday.
