Steward Health Care, a physician-led hospital operator based in the United States, filed for bankruptcy on Monday morning. Despite this financial crisis, the company announced that it will continue to operate its 32 hospitals, including eight in Massachusetts. The bankruptcy process is expected to finalize at $75 million.
The bankruptcy filing has come under criticism from Massachusetts Governor Maura Healey, who called Steward Health Care a “house of cards and a charade.” She expressed frustration with the for-profit health care system, which is one of the state’s largest employers. However, Dr. Ralph de la Torre, CEO of Steward, emphasized that the company has been striving to operate successfully in a challenging health care environment. He stated that filing for Chapter 11 restructuring is in the best interest of patients, physicians, employees, and communities.
Health and Human Services Secretary Kate Walsh announced that her administration is collaborating with Steward and potential partners to facilitate an orderly transfer of ownership. The goal is to protect access to care, preserve jobs, and stabilize the health care system. Despite this financial crisis facing Steward Health Care in Massachusetts hospitals, it is essential to keep patients’ care undisrupted during this process as they continue their operations under court supervision.
