Steward Health Files for Bankruptcy, Up for a New Loan

Steward Health, a US hospital network operating 30 hospitals across nine states, has filed for Chapter 11 bankruptcy in Texas. The privately-owned chain aims to secure a new loan from its landlord, Medical Properties Trust ( MPW ). Steward has sought short-term financing and to sell its physician group Stewardship Health, but the disposal has not been as swift as planned, forcing it to seek up to $225 million in financing from Medical Properties Trust. Steward CEO Ralph de la Torre said that with the additional financing, the chain will maintain the care of patients and employees.

The chain recently closed a hospital in Massachusetts, where state officials and politicians claim it did not disclose its financial troubles until they were deep enough to threaten medical care.

Massachusetts Health and Human Services Secretary Kate Walsh said the state is preparing for a possible bankruptcy and will support an orderly transfer of ownership to protect access to care, preserve jobs, and stabilize the healthcare system.