Steward Health Care, a hospital group with nine facilities in Massachusetts, has filed for bankruptcy. The company is facing significant debt and has initiated an in-court restructuring process through Chapter 11 of the U.S. Bankruptcy Code. The filing was made in the Southern District of Texas.
Steward announced that it is finalizing terms for debtor-in-possession financing from Medical Properties Trust amounting to $75 million initially and up to an additional $225 million upon fulfilling specific conditions. The company assured that there will be no interruptions in day-to-day operations and that necessary care for patients will continue without any disruption. CEO Dr. Ralph de la Torre stated that filing for Chapter 11 restructuring is in the best interests of patients, physicians, employees, and communities.
The Massachusetts Nurses Association responded to the bankruptcy filing by expressing concern over the potential loss of facilities, which would have a devastating impact on residents in the region. However, they also saw the reorganization process as an opportunity for stakeholders to address long-standing issues and prioritize the voices of caregivers and patients.
Despite financial challenges, Steward Health Care remains committed to providing quality patient care while working towards solutions to support the healthcare needs of its community members.
