Steward Health Care, a financially troubled hospital chain that operates in Texas and Massachusetts, has filed for bankruptcy under Chapter 11 protection. Despite the filing, the company assures its patients that operations will continue as usual during the reorganization process.
The reasons for Steward’s financial struggles include rising labor costs, inflation, and inadequate government reimbursement. Steward has secured $75 million in initial funding to support the reorganization.
In Massachusetts, where Steward runs multiple hospitals, state officials and healthcare unions have expressed concerns about the company’s financial situation and potential closure of facilities serving the Boston area and nearby regions. The Massachusetts government is working to ensure a smooth transfer of ownership that protects access to care and jobs.
Healthcare unions are calling for immediate action to preserve the facilities and transition them to stable, not-for-profit ownership. Failure to act could lead to health inequities, hospital closures, and weaken the overall healthcare system in the state. Many of the local hospitals under Steward’s control were acquired from a not-for-profit chain overseen by the Boston Archdiocese in 2010. The situation is still developing and will require ongoing attention.
