Steward Health Care, the largest physician-led hospital network in the United States, has filed for Chapter 11 bankruptcy in the Southern District Court of Texas as it works to finalize a loan from hospital landlord Medical Properties Trust. The company stated that both its assets and liabilities were between $1 billion and $10 billion. Last month, Steward missed its deadline to pay off its at least $750 million in debt. Despite the bankruptcy filing, Steward assured that its day-to-day operations will continue as usual, with hospitals, medical centers, and physicians’ offices remaining open to serve patients.
Steward operates over 30 hospitals across several states and is currently finalizing terms to receive debtor-in-possession financing from Medical Properties Trust. The initial funding is set at $75 million, with the possibility of up to $225 million in additional funding under certain conditions. One reason cited by Steward Health CEO Dr. Ralph de la Torre for the bankruptcy filing was a delay in the sale of the company’s physician group, Stewardship Health, to Optum.
Additionally, de la Torre mentioned insufficient reimbursement from Medicare and Medicaid, along with the continued impacts of Covid-19 on healthcare systems nationwide as contributing factors to their decision to file for bankruptcy. Steward Health is committed to keeping its hospitals open and operational throughout the bankruptcy process while continuing to care for patients and support its employees during this challenging time.
The company’s future remains uncertain as they navigate through this financial crisis but they are determined not to let it impact their ability to provide quality care for their patients.
