Steward Health Care, a hospital operator based in Dallas, filed for bankruptcy protection, but assured patients that their operations will continue without interruption. The company operates more than 30 hospitals nationwide, with eight in Massachusetts. Top political figures in the state, including U.S. Sens. Elizabeth Warren and Edward Markey, have criticized the company’s previous private equity owners for their actions.
Massachusetts Governor Maura Healey addressed the filing by stating that the state had been prepared for this possibility and established a call center for any questions. She criticized Steward’s management of the hospitals, attributing the crisis to greed, mismanagement, and lack of transparency from the company’s leadership in Texas. Despite the bankruptcy filing, Healey reassured the public that Steward hospitals will remain open and urged patients to keep their appointments.
Steward announced that they are finalizing debtor-in-possession financing from their landlord, Medical Properties Trust, for initial funding of $75 million and potentially an additional $225 million. The CEO of Steward, Dr. Ralph de la Torre, stated that the Chapter 11 restructuring is in the best interests of patients, physicians, employees, and communities. He highlighted challenges related to insufficient reimbursement by government payers and decreasing rates amidst rising costs.
Torre emphasized that seeking bankruptcy protection will allow Steward to transition ownership of its Massachusetts-based hospitals responsibly, ensuring continued care for patients and communities. Massachusetts Attorney General Andrea Campbell stated that the bankruptcy does not allow Steward to immediately shut down and leave the state. Her office will advocate for patients and workers throughout the bankruptcy proceedings and prevent the system from profiting at the expense of patient care.
In March, Steward announced a deal to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, to stabilize its finances. State monitors were already monitoring the health care facilities operated by Steward Health Care in Massachusetts, especially in areas with poorer communities. Massachusetts Democratic Senate President Karen Spilka expressed concern for the quality and continuity of care for thousands of patients within the Steward system.
Democratic House Speaker Ronald Mariano announced that the House will address the gaps in the state’s regulatory process exploited by Steward through comprehensive legislation. The bankruptcy filing of Steward Health Care has raised concerns about the future of healthcare services in Massachusetts and the impact on patients, employees, and communities. It remains to be seen how the company will navigate the bankruptcy process and ensure the continued provision of care to those who rely on their services.
