Hospital operator Steward Health Care files for bankruptcy

Business

BOSTON (AP) — Hospital operator Steward Health Care filed for bankruptcy protection early Monday morning, but pledged to take care of the eight hospitals it operates in Massachusetts.

In a news release, company officials said Steward viewed the move as a vital measure so the corporate could proceed to supply vital care to its patients.

“Steward does not anticipate any disruption to its day-to-day operations, which will continue to operate as usual throughout the Chapter 11 process,” the corporate said in a written statement. “Steward’s hospitals, medical centers and physician offices are open and continuing to serve patients and the broader community, and our commitment to our employees will not change.”

The Dallas-based company operates greater than 30 hospitals nationwide. Stewards eight hospitals in Massachusetts, including St. Elizabeth's Hospital and Carney Hospital, each in Boston. It filed for defense within the U.S. Bankruptcy Court for the Southern District of Texas.

Steward's troubles in Massachusetts have drawn the ire of senior political figures, including U.S. Senators Elizabeth Warren and Edward Markey, who said the corporate's previous private equity owners “sold (Steward) for parts” and ” “got away with hundreds of millions of dollars.” ”

Steward said it was finalizing the terms of its landlord Medical Properties Trust's “debtor-in-owner financing” for an initial financing of $75 million and “up to an additional $225 million upon satisfaction of certain conditions.”

“Steward Health Care has done everything in its power to operate successfully in an extremely challenging healthcare environment. Filing for Chapter 11 restructuring is currently in the best interest of our patients, physicians, employees and communities,” said Dr. Ralph de la Torre, CEO of Steward, said in a press release.

“Over the last few months, we have secured bridge financing and progressed the sale of our Stewardship Health business to help stabilize operations across all of our hospitals. Due to the delay in closing the Stewardship Health transaction, Steward was forced to seek alternative methods to bridge its operations,” he added.

He also pointed to what he said was inadequate reimbursement from government payers consequently of declining reimbursement rates at a time of skyrocketing costs.

Torre said that by filing for bankruptcy protection, Steward can be higher in a position to “responsibly transfer ownership of its Massachusetts-based hospitals, keep all hospitals open to treat patients, and ensure the continued care and support of our patients and our communities.” to make sure.”

In March, the corporate announced it had reached an agreement to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, to stabilize its funds.

The move got here as Gov. Maura Healey said state monitors were keeping track of health care facilities operated by Steward Health Care in Massachusetts, including hospitals in a few of the state's poorer communities.

Massachusetts Democratic Senate President Karen Spilka said Monday that her “immediate concern continues to be the quality and continuity of care for the thousands of patients within the Steward system.”