Steward Health Care, the largest physician-led hospital operator in the U.S., filed for bankruptcy early Monday morning. The health care network stated that it would continue to operate its 32 hospitals, including eight in Massachusetts, while undergoing financial restructuring under court supervision. They are still working on finalizing the terms of the $75 million bankruptcy.
Massachusetts Governor Maura Healey recently criticized Steward Health Care, calling it a “house of cards and a charade” as the company faces a financial crisis that could impact several Massachusetts hospitals. She expressed frustration with the for-profit health care system, which is one of the state’s largest employers.
Despite the bankruptcy filing, 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. Steward assured that there should be no disruptions in patient care during this process.
Health and Human Services Secretary Kate Walsh announced that the Healey-Driscoll 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.