In a move to address its millions of dollars in debt, Steward Health Care, a hospital group with nine facilities in Massachusetts, has filed for bankruptcy. The company initiated the Chapter 11 restructuring process through a filing in the Southern District of Texas. Steward is finalizing terms for debtor-in-possession financing from Medical Properties Trust to provide initial funding of $75 million and up to an additional $225 million. According to the company, this voluntary step will allow them to continue providing necessary care to patients without any disruptions in day-to-day operations.
The bankruptcy filing is not expected to impact day-to-day operations at Steward’s facilities, according to the company’s CEO, Dr. Ralph de la Torre. He stated that the decision to file for Chapter 11 restructuring is in the best interest of patients, physicians, employees, and communities. The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting the potential devastating consequences for residents in the affected areas. While the situation presents challenges, it also provides an opportunity for stakeholders to prioritize the voices of caregivers and patients during the reorganization process.
Matt Schooley, a digital producer at CBS Boston who has been part of the WBZ news team for over a decade, reported on Steward Health Care’s bankruptcy filing earlier today.