Colin A. Young
Steward Healthcare, which operates Massachusetts' third-largest hospital system, has filed for Chapter 11 bankruptcy in Texas, seeking legal protection to restructure its debt while keeping its hospitals open.
The company, which operates eight Bay State hospitals, is mired in debt to contractors and de facto landlords, but says it doesn't expect any disruption to day-to-day operations and calls filing for bankruptcy a “necessary step.” Stated. This allows the company to continue providing needed care to patients in the community without disruption. ”
In a late-night press release, the company said it had finalized $75 million in initial funding and up to an additional $225 million, subject to certain conditions, in debtor financing from Medical Property Trust. “There is,” he said. These are the conditions that Medical Properties Trust, the real estate investment trust that owns the Steward Hospital site, has accepted.
Steward also said the move would make it easier to transfer Massachusetts hospitals to another company.
“Steward Healthcare has been committed to operating a successful business in an extremely challenging healthcare environment. , in the best interest of the community,” said Steward CEO Ralph De. La Torre said. “Over the past several months, we have secured bridging financing to stabilize operations at all of our hospitals and progressed the sale of our Stewardship Health business.Due to delays in the closing of the Stewardship Health transaction, Steward We were forced to explore alternatives.''We are confident that the additional funding raised through this process will allow us to keep the hospital open, supplied and operating to maintain care for our patients and employees. ”
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The state government announced Friday it has launched an incident command system to track and respond to steward situations.
“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.” said Health and Human Services Secretary Kate Walsh.
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The Massachusetts Nursing Association and 1199 SEIU said in a statement that Steward's bankruptcy filing “provides an opportunity for other stakeholders to take much-needed action and center the voices of caregivers and patients.”
“That's why this bankruptcy declaration is necessary for the administration, Congress, the medical industry, and everyone who cares about the health of our communities to ensure that these facilities are preserved and transitioned to safer facilities. “This is merely an encouragement to take all necessary steps immediately to ensure that the company is stable and free from liability for profit ownership,” the union said.
Steward operates eight hospitals in Massachusetts. St. Elizabeth Hospital in Brighton, Kearney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen and Haverhill Hospital in Haverhill, Morton Hospital in Taunton, Nashoba Valley Medical Center in Ayer, and Norwood Hospital. , St. Anne's of Fall River.
