Steward Health Care files for Chapter 11 bankruptcy amid financial challenges

Steward Health Care, one of the largest physician-led hospital operators in the country, has filed for Chapter 11 bankruptcy, citing decreasing government reimbursement rates and rising costs as primary factors. The company is finalizing a deal with its landlord, Medical Properties Trust, for a bankruptcy loan of up to $300 million to keep its hospitals running without disruption.

With 33 community hospitals across nine states, Steward is the largest tenant of Medical Properties Trust. Despite the bankruptcy filing, Steward reassures patients that its hospitals, medical centers, and physician’s offices remain open and committed to serving the community.

The Massachusetts Health Policy Commission is closely monitoring the situation, especially in light of Steward’s deal to sell its physician group to Optum Care. The commission is working to understand the implications of the Chapter 11 process on the proposed sale and any other changes in ownership that may arise.

Steward CEO Dr. Ralph de la Torre expressed confidence in the company’s ability to navigate the restructuring process and maintain operations to continue providing care to patients and communities. The company is focused on resolving the Chapter 11 process quickly and ensuring the long-term financial health of the system.

As Steward Health Care works through this challenging period, stakeholders are hopeful that the company will emerge stronger and better positioned to continue its mission of providing quality healthcare services to the communities it serves.