Steward Health Care, which operates eight troubled hospitals in Massachusetts, filed for Chapter 11 bankruptcy protection early Monday. The private equity-backed for-profit hospital group's problems came to the fore this year when it was revealed that it was behind on about $50 million in unpaid rent. Steward officials have since expressed interest in closing one facility and selling other holdings. The Dallas-based company said it is finalizing terms for $75 million and up to an additional $1 million in debtor financing with owner Medical Properties Trust. $225 million if certain conditions are met. Steward's eight hospitals in Massachusetts are St. Elizabeth Hospital in Brighton, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen, Haverhill Hospital in Haverhill, and Morton Hospital in Taunton. hospitals, Nashoba Valley Medical Center in Ayer, Norwood Hospital, and St. Anne's in Fall River. “Steward Health Care has worked hard to succeed in a very challenging healthcare environment. At this time, filing for Chapter 11 reorganization is in the best interest of our patients, physicians, employees, and community. Steward CEO Dr. Ralph de la Torre said in a statement. The Massachusetts Nursing Association warned that “the potential loss of any of these facilities would have devastating consequences for hundreds of thousands of residents from the South Shore to southern New Hampshire.” “However, as Steward undergoes a restructuring process, it provides an opportunity for other stakeholders to take much-needed action and center the voices of caregivers and patients,” the company statement said. , medical centers and clinics will remain open during the bankruptcy period. process. “Another major factor that gave rise to this voluntary Chapter 11 case was primarily that Stewards faced rising labor costs, increased material costs, and government payers as a result of declining reimbursement rates. “This is because we continue to face challenges posed by inadequate reimbursement due to 'inflationary operating costs, and the continuing impact of the COVID-19 pandemic,'” Delatorre's statement said. “The Stewards' goal is to resolve the Chapter 11 process as quickly as possible, with the assistance of the courts, given the long-term and sustainable financial health of the system.” Last week, Massachusetts officials said , an “emergency management plan” in response to a crisis. “Steward will be withdrawing from this market,” Gov. Maura Healey said Friday. “What's important is that patients continue to go to the hospital and use these hospitals to get the care they need.” Last month, officials announced that they would be able to increase local health care to get through the situation, according to the Statehouse News Service. He began holding private meetings with leaders. Addressing the uncertainty surrounding the stewardship crisis, Health and Social Care Secretary Kate Walsh said the measures should be “very reassuring” for people concerned about preparing for disruption. At a recent Senate oversight hearing, Walsh said officials were preparing for a possible bankruptcy filing for Steward. And he acknowledged that there had been discussions over receivership.
Steward Health Care, which operates eight troubled hospitals in Massachusetts, filed for Chapter 11 bankruptcy protection early Monday.
The private equity-backed for-profit hospital group's problems came to the fore this year when it was revealed that it was behind on about $50 million in unpaid rent. Steward officials have since expressed interest in closing one facility and selling other holdings.
The Dallas-based company finalizes debtor financing terms with landlord Medical Properties Trust for $75 million, and up to $225 million if certain conditions are met. He said he is doing so.
Steward's eight hospitals in Massachusetts are St. Elizabeth Hospital in Brighton, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen, Haverhill Hospital in Haverhill, and Morton Hospital in Taunton. hospitals, Nashoba Valley Medical Center in Ayer, and Norwood Hospital. , St. Anne's of Fall River.
“Steward Healthcare has worked hard to succeed in a very challenging healthcare environment. At this time, filing for Chapter 11 reorganization is in the best interest of our patients, physicians, employees, and community. ,” Steward CEO Dr. Ralph de la Torre said in a statement.
The Massachusetts Nursing Association warned that “the potential loss of any of these facilities would have devastating consequences for hundreds of thousands of residents from the South Shore to southern New Hampshire.” “However, the Stewards' restructuring process provides an opportunity for other stakeholders to take much-needed action and center the voices of carers and patients.”
The company's statement emphasized that its hospitals, medical centers and clinics will remain open during the bankruptcy process.
“Another major factor that led to this voluntary Chapter 11 case was primarily that Steward was unable to pay government payers as a result of declining reimbursement rates, even as he faced rising labor costs and material increases. “This is because we continue to face challenges posed by inadequate reimbursement due to 'inflationary operating costs, and the continuing impact of the COVID-19 pandemic,'” Delatorre's statement said. “Considering the long-term and sustainable financial health of the system, it is the Stewards' goal, with the cooperation of the courts, to resolve the Chapter 11 process as quickly as possible.”
Last week, Massachusetts officials announced the activation of an “emergency operations plan” in response to the crisis.
“Mr. Steward will be exiting this market,” Gov. Maura Healey said Friday. “The important thing is that patients continue to go to the hospital and use these hospitals to get the care they need.”
Officials began meeting privately with local health leaders last month to navigate the uncertainty surrounding the stewardship crisis, according to the State House News Service, but Health and Human Services Secretary Kate Walsh said it was a concern. It should be “very reassuring” for people who do, he said. Prepare for chaos.
At a recent Senate oversight hearing, Mr. Walsh said officials were preparing Mr. Steward for a possible bankruptcy filing and acknowledged there had been discussions about receivership.
