Steward Health Care, a hospital group operating nine facilities in Massachusetts, has announced that it is filing for bankruptcy. The company is facing significant debt and has initiated a Chapter 11 restructuring process through the U.S. Bankruptcy Code by submitting petitions in the Southern District of Texas.
Despite the bankruptcy filing, Steward stated that it will continue to provide necessary care to its patients without interruptions in day-to-day operations. To support this, the company is finalizing details on 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.
Dr. Ralph de la Torre, CEO of Steward, emphasized that filing for Chapter 11 restructuring was the best decision for both the company and its stakeholders, including patients, physicians, employees, and communities they serve. The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting potential consequences for residents and urging prioritization of caregiver and patient voices in 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.