Steward Hospital files for bankruptcy

BOSTON, Mass. (WLNE) — Steward Healthcare announced Monday that they have filed for Chapter 11 bankruptcy.

Dallas-based Steward Health Care says it’s finalizing the terms of debtor-in-possession financing from Medical Properties Trust for an initial funding of $75 million and up to an additional $225 million upon satisfying certain conditions acceptable to Medical Properties Trust.

They further said that they took this measure  to allow the company to continue to provide necessary care to its patients in their communities without disruption.

The eight hospitals that they do own, such as Morton Hospital, will remain open.

In the statement, Dr. Ralph de la Torre, Chief Executive Officer of Steward said:

“Steward Health Care has done everything in its power to operate successfully in a highly challenging health care environment. Filing for Chapter 11 restructuring is in the best interests of our patients, physicians, employees, and communities at this time. 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.

With the additional financing in this process, we are confident that we will keep hospitals open, supplied, and operating so that our care of our patients and our employees is maintained. By working collaboratively with stakeholders in this court-supervised controlled environment, and having the benefit of our earlier strategic efforts, Steward will be better positioned to responsibly transition ownership of its Massachusetts-based hospitals, keep all of its hospitals open to treat patients, and ensure the continued care and service of our patients and our communities.”

In February, Governor Maura Healey called for Steward to leave the state and transition its hospitals to new owners.

The state has been concerned about the company’s finances for some time as it was reported that Steward owed $50 million in rent.

Governor Maura Healey will hold a press conference to discuss the impact of Steward Health Care filing Chapter 11 bankruptcy and what this means for the people and the health care landscape in Massachusetts.