Steward Health Care, the largest physician-led hospital operator in the U.S., has announced that it will file for bankruptcy early Monday morning. The health care network 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 among stakeholders, with Gov. Maura Healey calling the situation a “house of cards and a charade.” The for-profit health care system, which is one of the state’s largest employers, has come under scrutiny as it navigates through this challenging time.
According to Dr. Ralph de la Torre, the chief executive officer of Steward, 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.