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BOSTON (WBZ NewsRadio) — Steward Health Care is filing for bankruptcy.
Steward Health Care announced on Monday that the company has filed for relief “under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.” Steward Health Care owns nine facilities in Massachusetts and more than 20 other facilities across the country.
“The Company is finalizing the terms of debtor-in-possession financing from Medical Properties Trust for initial funding of $75 million and up to an additional $225 million upon the satisfaction of certain conditions acceptable to Medical Properties Trust,” said Steward Health Care in a statement.
Steward has been in the process of trying to sell its facilities, citing “the delay in the closing of the Stewardship Health transaction” as one of the main reasons for filing for Chapter 11. In February, Gov. Maura Healey called on Steward Health Care’s CEO Dr. Ralph de la Torre to transfer the company’s facilities in the Commonwealth to new operators.
“In the past several months we have secured bridge financing and progressed the sale of our Stewardship Health business in order to help stabilize operations at all of our hospitals. With the delay in closing of the Stewardship Health transaction, Steward was forced to seek alternative methods of bridging its operations,” said Dr. de la Torre in a statement.
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Steward also said it does not expect any impacts on the “day-to-day operation” of its facilities.
“Steward’s hospitals, medical centers and physician’s offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change,” said Steward Health Care in a statement.
The Massachusetts Nursing Association (MNA) and 1199SEIU United Healthcare Workers East issued a joint statement, warning of “devastating consequences” if any of the Massachusetts facilities were to close.
“The administration, the legislature, the healthcare industry, and all those who value the health of our communities should immediately take whatever steps are needed to ensure the preservation of these facilities and the safe transition to more stable and responsible not-for-profit ownership. Inaction would worsen health inequities, create hospital deserts, and weaken the entire healthcare infrastructure for all patients in Massachusetts,” said MNA and 1199SEIU in a statement.
WBZ NewsRadio's Jim MacKay (@JimMacKayOnAir) reports.
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