BOSTON (AP) — Hospital operator Steward Healthcare filed for bankruptcy protection early Monday but pledged to maintain the eight hospitals it operates in Massachusetts.
Company officials said in a press release that Steward took this step as a necessary step for the company to continue providing patients with the care they need.
“Stewards does not anticipate any disruption to day-to-day operations and will continue as normal throughout the Chapter 11 process,” the company said in a written statement. “Steward hospitals, medical centers and clinics are open and continue to serve our patients and the broader community, and our commitment to our employees remains the same.”
The Dallas-based company operates more than 30 hospitals across the country. His eight hospitals in Massachusetts run by Steward include St. Elizabeth Hospital and Carney Hospital in Boston. The company filed for protection in the U.S. Bankruptcy Court for the Southern District of Texas.
Due to stewardship troubles in Massachusetts; Anger from top political figures Sens. Elizabeth Warren and Edward Markey are among them, who say the company's previous private equity owners “sold[Steward]for parts” and made “hundreds of millions of dollars.” I brought it home,'' he said.
Massachusetts Gov. Maura Healey said Monday that the state is preparing for a possible bankruptcy filing and has set up a call center for people with questions. He said despite the application, Steward Hospital would remain open and patients should continue to keep their appointments.
Mr Healy was particularly critical of Mr Steward's management of the hospital, which he said led to the crisis.
“This situation stems from and is rooted in greed, mismanagement and lack of transparency on the part of Steward leadership in Dallas, Texas,” Healey said at a press conference Monday. “This is a situation that should never happen, and we will work together to take measures to prevent it from happening again.”
Stewards said it was finalizing terms for a “debtor financing” of $75 million in initial funding from landlord Medical Property Trust and “up to an additional $225 million if certain conditions are met.” Stated.
“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 press release.
“Over the past several months, we have secured bridging financing to stabilize operations at all of our hospitals and progressed with the sale of our Stewardship Health business.Due to delays in closing the Stewardship Health transaction, Steward “We have been forced to look for other ways to bridge our operations,” he added.
He also noted that reimbursement rates have declined amid rising costs, resulting in insufficient reimbursement by government payers.
Torre said that by seeking bankruptcy protection, Steward would be able to “responsibly transition ownership of the Massachusetts-based hospital, continue to provide all hospitals with patient care, and continue to serve our patients and communities.” “We are in a good position to ensure quality care and services,” he said.
Massachusetts Attorney General Andrea Campbell said Monday that the bankruptcy prevents Steward from “immediately closing his doors and leaving town.” She said her office will advocate on behalf of patients and workers throughout her bankruptcy proceedings.
“I also want to make it clear that this hospital system takes very seriously any effort to profit from the detriment of patients and strip the hospital of its values,” Campbell said. Ta.
In March, the company announced that it had signed the following agreements: Sold nationwide physician network to Optuma subsidiary of United Health Group, is working to stabilize its finances.
The move comes as state monitors monitor medical facilities run by Steward Healthcare in Massachusetts, including hospitals in some poor communities in the state, Healey said. It was held inside.
“The immediate concern remains the quality and continuity of care for the thousands of patients within the Steward system,” Massachusetts Democratic Senate President Karen Spilka said Monday.
Democratic House Speaker Ronald Mariano said the House will consider a comprehensive bill next week to address gaps in the state regulatory process that Steward exploited.
