Hialeah Mayor Esteban Bovo Jr. stated that Steward Health Care, which owns five South Florida hospitals including Palmetto General Hospital in Hialeah, has filed for Chapter 11 bankruptcy. This will affect the operations of all five hospitals and the company assures that they will remain open as they restructure their operations. The private for-profit group released a statement on their website stating that they have done everything in their power to operate successfully, but filing for Chapter 11 restructuring is in the best interest of their patients, physicians, employees, and communities at this time.
On their website, Steward Health Care provided a link with court filings and other information related to the “restructuring proceedings.” Nurses at Florida Medical Center in Lauderdale Lakes protested in 2022 warning the public of the financial troubles. The CEO, Dr. Ralph de la Torre, stated that insufficient Medicare and Medicaid reimbursement, along with rising labor and medical supply costs are to blame for the financial troubles.
Despite the bankruptcy filing, Steward Health Care assured that all hospitals, doctors’ offices, and other facilities will remain open as they restructure their operations. The Florida Agency for Health Care Administration also ensured continuity and care at all Florida-based hospitals and medical facilities owned by Steward Health Care. The company has received $75 million in special funding to help sustain patient care services and is hoping to receive a bailout.
The first federal hearing on the company’s bankruptcy filing is set for Tuesday.
