Steward Health Care Files for Bankruptcy, Pledges to Maintain Massachusetts Hospitals
Steward Health Care, a hospital operator based in Dallas, Texas, has filed for bankruptcy protection in order to continue providing care to its patients. The company operates eight hospitals in Massachusetts and five hospitals in Texas, including St. Joseph Medical Center in Houston and Medical Center of Southeast Texas in Port Arthur.
In a press release, company officials stated that the bankruptcy filing was a necessary measure to ensure the company’s operations continue without interruption. Despite the filing, Steward reassured the public that its hospitals, medical centers, and physician’s offices will remain open and continue to serve patients.
The company’s troubles in Massachusetts have drawn criticism from top political figures, including U.S. Sens. Elizabeth Warren and Edward Markey, who have accused Steward’s previous private equity owners of mismanagement and greed. Massachusetts Governor Maura Healey has established a call center for anyone with questions and emphasized that Steward hospitals will remain open.
Steward Health Care CEO Dr. Ralph de la Torre explained that the bankruptcy filing will allow the company to responsibly transition ownership of its Massachusetts-based hospitals while ensuring continued care for patients. The company is finalizing debtor-in-possession financing to support its operations during the restructuring process.
Massachusetts Attorney General Andrea Campbell has pledged to advocate for patients and workers throughout the bankruptcy proceedings, emphasizing the importance of maintaining quality care within the Steward system. The company recently announced a deal to sell its nationwide physician network as part of its efforts to stabilize finances.
As the situation continues to develop, state officials and lawmakers are closely monitoring Steward Health Care’s operations and taking steps to address regulatory gaps that may have contributed to the company’s financial challenges. Stay tuned for updates on this developing story.