Steward Health Care, a hospital group that operates nine facilities in Massachusetts, announced on Monday that it is filing for bankruptcy. The company is facing millions of dollars in debt and will proceed with 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 there would be no interruptions in day-to-day operations and they will continue to provide necessary care to their patients without disruption. The company is finalizing the 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, the CEO of Steward, mentioned that filing for Chapter 11 restructuring was the best decision for the company, its patients, physicians, employees, and the communities they serve. He emphasized on prioritizing caregivers and patients voices in the reorganization process as they navigate through this difficult time.
The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting the potential consequences for residents and emphasizing the need to prioritize caregivers’ voices in the reorganization process. They called on Steward to put patient care first and ensure that their needs are met during this transition period.
Matt Schooley, a digital producer at CBS Boston who has been a member of WBZ news team for over a decade reported on this significant event in detail for his viewers.