Steward Health Care, which runs multiple hospitals in Massachusetts and Texas, has filed for bankruptcy in a federal court in Texas. The company assures that operations will continue as normal during the process, under Chapter 11 bankruptcy protection. Reasons for its financial troubles include rising labor costs, inflation, and inadequate government reimbursement. Steward has secured $75 million in initial funding to support the reorganization.
The healthcare unions have raised concerns about the potential closure of hospitals serving the Boston area and nearby regions, which could have severe consequences for residents. Massachusetts government officials are working to ensure a smooth transfer of ownership that protects access to care and jobs. They are calling for immediate action to preserve the facilities and transition to stable, not-for-profit ownership. Failure to act could lead to health inequities, hospital closures, and weaken the overall healthcare system in the state.
Many of the local hospitals under Steward’s control were acquired from a not-for-profit chain overseen by the Boston Archdiocese in 2010. The situation is still developing and will require ongoing attention.
