Steward Health Care, Largest Physician-Owned Healthcare Network in U.S., Files for Chapter 11 Bankruptcy: What You Need to Know

Steward Health Care, the largest physician-owned healthcare network in the U.S., with hospitals across the country and in Florida, has filed for Chapter 11 bankruptcy. This news has sent shockwaves through the healthcare industry and raised concerns about the future of patient care at Steward’s hospitals.

Steward Health Care, founded by Cuban American and Floridian Dr. Ralph de la Torre, owns several hospitals in Florida, including Palmetto General Hospital in Hialeah and North Shore Medical Center in North Miami-Dade. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, citing over $1 billion in debt.

Despite the bankruptcy filing, Steward has assured the public that patient care will not be affected during the process. The company is in negotiations for a loan from Medical Trust Properties, the landlord that owns all of Steward’s real estate, to ensure continued operations.

However, the future of Steward’s hospitals remains uncertain. John McDonough, a public health expert, explained that hospitals could be sold to other investors, converted to different businesses, or even torn down for development. The fate of these facilities, especially those serving underserved populations, is a concern for many.

The bankruptcy filing was attributed to rising costs, delays in finalizing the sale of its physician network, and decreasing reimbursement rates from Medicare and Medicaid. Steward’s aggressive expansion and financial mismanagement have led to this point, according to experts.

As the bankruptcy process unfolds, stakeholders, including healthcare workers, government officials, and community leaders, are closely monitoring the situation to ensure continuity of care for patients. The impact of Steward’s bankruptcy on the healthcare landscape in Florida and beyond is yet to be fully realized.