Massachusetts officials are preparing for a potential bankruptcy filing by Steward Health Care, a cash-strapped hospital system that operates eight hospitals in the state. Health and Human Services Secretary Kate Walsh stated that the state is consulting with experts to understand the implications of a bankruptcy and plan for a smooth transition. Walsh emphasized that a bankruptcy filing does not automatically mean hospital closures, and operations could continue while creditors and new operators are considered.
A spokesperson for Steward declined to comment on the possibility of a bankruptcy filing, which could be triggered if the company fails to meet a Monday payment deadline to lenders who have provided $750 million in financing. Steward has been facing financial difficulties, including unpaid rent and lawsuits from vendors, and is reportedly trying to sell its Massachusetts hospitals.
Public Health Commissioner Robbie Goldstein has held contingency planning sessions with leaders of other hospitals and community health centers to discuss handling an influx of patients if Steward winds down services or closes hospitals. He emphasized the cooperation and willingness of healthcare providers to assist.
Walsh acknowledged that different approaches may be needed to meet patients’ needs in different parts of the state, including an increase in telehealth, primary care, and home-based care. She recognized the potential impact on communities served by Steward hospitals and stressed the importance of coordination and collaboration among healthcare organizations.
A field hearing held in Taunton, near a Steward-operated hospital, focused on healthcare needs in the region and the impact of Steward’s financial crisis. Katie Murphy, president of the Massachusetts Nurses Association, expressed concerns about the suffering caused by Steward’s ownership practices over the years.
Walsh highlighted the complexity of Steward’s financial structure and the lack of precedent for an exit from such a deal. She noted that a bankruptcy filing would require the disclosure of financial information, which Steward has previously resisted. Despite the uncertainty, Walsh commended nurses and other hospital workers for their continued dedication to patient care during the crisis.
The state remains committed to ensuring access to quality hospital care and is actively working to facilitate a safe and effective transition of Steward hospitals to new ownership if necessary.
