Steward Health Care, a hospital group that owns nine facilities in Massachusetts, announced on Monday that it is filing for bankruptcy. The company is facing millions of dollars in debt and is proceeding with a Chapter 11 restructuring process through the U.S. Bankruptcy Code by submitting petitions in the Southern District of Texas.
Steward stated that it is finalizing the details of debtor-in-possession financing from Medical Properties Trust, with an initial funding of $75 million and up to an additional $225 million upon certain conditions being met. Despite the bankruptcy filing, Steward assured that there would be no interruptions in day-to-day operations, allowing them to continue providing necessary care to their patients without disruption.
Dr. Ralph de la Torre, the CEO of Steward, mentioned that filing for Chapter 11 restructuring was the best decision for the company, its patients, physicians, employees, and the communities they serve. The Massachusetts Nurses Association responded to the bankruptcy filing by highlighting the potential consequences for residents and emphasizing the need to prioritize the voices of caregivers and patients in the reorganization process.
Matt Schooley, a digital producer at CBS Boston, reported on the bankruptcy filing and has been a member of the WBZ news team for
