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Steward Health Files for Chapter 11 in Texas, Operates 30 Hospitals

May 6, 2024, 01:20 PM

Steward Health Care, a major operator of 30 hospitals across nine US states, has filed for Chapter 11 bankruptcy protection in Texas. This development follows a period of financial struggles, including the anticipation of a breakup of its hospital system in Massachusetts. State officials had previously activated an emergency incident command system to manage the fallout from the company's financial crisis. The bankruptcy filing, which took place early Monday morning, involves Steward's operation of eight hospitals in Massachusetts and aims to secure a new loan from its landlord, Medical Properties Trust. Governor Maura Healey has criticized the leadership at Steward Healthcare following the announcement. The bankruptcy case is described as a free-fall scenario with no debtor-in-possession (DIP) financing or restructuring support agreement (RSA) in place.