BOSTON — The struggling company that operates eight hospitals in Massachusetts announced Monday morning that it has filed for bankruptcy.
Dallas-based Steward Health Care said it is finalizing the terms of a debtor loan from Medical Property Trust, with initial funding of $75 million and certain financing options allowed by Medical Property Trust. The company plans to raise up to an additional $225 million if conditions are met.
Steward said in a statement that the company took this voluntary action to seek Chapter 11 bankruptcy relief as a necessary step to ensure that the company continues to provide needed care to patients in the community without disruption. did.
All local Steward-owned hospitals will remain open, according to Steward Chief Executive Officer Dr. Ralph de la Torre. They are:
- St. Elizabeth's Church, Brighton
- Kearney Hospital in Dorchester
- Good Samaritan Medical Center in Brockton
- Holy Family Hospital in Methuen
- Haverhill Hospital in Haverhill
- Morton Hospital in Taunton
- Ayer's Nashoba Valley Medical Center
- 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 the best option for our patients, physicians, employees, and communities. “Over the past few months, we have secured bridging financing and progressed the sale of our Stewardship Health business to stabilize the operations of all our hospitals,” De La Torre said. ” he said. “Steward is committed to responsibly transitioning ownership of Massachusetts-based hospitals, ensuring all hospitals remain open to patient care, and ensuring continuity of care and service to patients and the community. You will be in a more advantageous position.”
Norwood Hospital in Norwood remains temporarily closed after flooding. Steward Healthcare permanently closed New England Sinai Hospital in Stoughton last month.
In late January, Steward said the hospital's financial performance had declined 1,600 percent over the past five years. Medical companies blamed the decision to close hospitals on “soaring costs” related to labor costs, material costs due to inflation, and the effects of the prolonged coronavirus pandemic. Steward also said he owes about $50 million in unpaid rent.
“Delays in the completion of the Stewardship Health transaction have forced Steward to seek alternative ways to bridge the business. The additional funding in this process will allow us to open, supply and We are confident that we will be able to maintain operations and maintain care for our patients and employees,” De La Torre added. “By working with stakeholders in this court-supervised, controlled environment and benefiting from previous strategic efforts.”
Massachusetts Health and Human Services Secretary Kate Walsh said Gov. Maura Healey was preparing to announce the bankruptcy.
“Today, Steward Healthcare moved forward with its federal bankruptcy filing, which the Healey-Driscoll administration has been preparing for. Steward Hospital remains open and patients should not hesitate to receive care. The Healey-Driscoll Administration is working with stewards and potential partners to support an orderly transfer of ownership that protects access to care, preserves jobs, and stabilizes our health care system.” Mr. Walsh said.
The Massachusetts Nursing Association said the potential loss of any of these facilities would have a devastating impact on hundreds of thousands of residents from the South Shore to southern New Hampshire.
“The Administration, Congress, the health care industry, and all those who care about the health of our communities must do what is necessary to preserve these facilities and ensure their safe transition to more stable, responsible nonprofit ownership. All necessary measures should be taken immediately.” “Inaction will further exacerbate health care disparities, create hospital deserts, and weaken the entire health care infrastructure for all patients in Massachusetts,” an MNA spokesperson said.
Mr. Walsh announced last week that a Boston doctor would lead the state's emergency surgery plan to ensure clinical quality and access to care in eastern Massachusetts, which faces Mr. Steward's challenges.
This is a developing story. Check back for updates as more information becomes available.
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