Steward Health Care Files for Chapter 11 Bankruptcy in Massachusetts

May 6, 2024, 08:51 AM

Steward Health Care, a health care provider operating eight hospitals in Massachusetts, has filed for Chapter 11 bankruptcy protection early Monday morning. This development follows a period of financial struggles that prompted state officials to activate an emergency operations plan to manage the fallout. The company, which had expanded nationally and was once considered a low-cost alternative to Boston's larger medical institutions, faced growing concerns about potential bankruptcy leading up to the filing. Additionally, Steward Health Care is finalizing a rescue loan with its landlord, Medical Properties Trust, amidst this financial turmoil. The bankruptcy filing occurred without a debtor-in-possession (DIP) financing or a restructuring support agreement (RSA).