Steward Health Care seeks bankruptcy protections

Steward Health Care, the largest private, for-profit hospital chain in the U.S., has filed for Chapter 11 bankruptcy in Texas. The Dallas-based company seeks to restructure its debt while continuing to operate its hospitals. Steward cites government reimbursement rates, increased labor costs, inflation, and COVID-19 impacts as reasons for its financial troubles. The company plans to negotiate "debtor-in-possession" financing to maintain operations during the bankruptcy process.

Massachusetts officials are actively involved, ensuring continuity of care and exploring potential ownership transfers to stabilize the healthcare system. Governor Maura Healey criticized Steward's management, attributing the bankruptcy to mismanagement and greed. State efforts include maintaining healthcare services and supporting Steward's employees and patients through the transition. The bankruptcy proceedings may reveal more about Steward's financial challenges and the feasibility of its operational strategies moving forward.