Steward Health Care, a hospital group that operates nine facilities in Massachusetts, has announced that it is filing for bankruptcy. The company is facing millions of dollars in debt and has commenced a Chapter 11 restructuring process through the U.S. Bankruptcy Code by submitting petitions in the Southern District of Texas.
Despite the bankruptcy filing, Steward stated that it is finalizing details of debtor-in-possession financing from Medical Properties Trust with an initial funding of $75 million and up to an additional $225 million upon certain conditions being met. Dr. Ralph de la Torre, CEO of Steward, mentioned that this decision was the best course of action for the company, its patients, physicians, employees and communities they serve.
The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting potential consequences for residents and emphasizing the need to prioritize caregivers’ voices and patients’ needs in the reorganization process. Matt Schooley, a digital producer at CBS Boston who has been with WBZ news team for over a decade, reported on the bankruptcy filing.