May 7, 2024- Dallas-based Steward Healthcare has filed for Chapter 11 bankruptcy, as announced in a May 6 press release. According to Steward Health, the company “took this voluntary step May 6 as a necessary measure to allow the Company to continue to provide necessary care to its patients in their communities without disruption. Steward does not expect any interruptions in its day-to-day operations, which will continue in the ordinary course throughout the Chapter 11 process.”
In the past several months, the company secured bridge financing and progressed the sale of the Stewardship Health business in order to help stabilize operations. With the delay in closing of the Stewardship Health transaction, the company was forced to seek alternative methods of bridging its operations.
The other primary factor driving the voluntary Chapter 11 case is due to the company continuing to face challenges created by insufficient reimbursement by government payors as a result of decreasing reimbursement rates while at the same time facing skyrocketing labor costs, increased material and operational costs due to inflation, and the continued impacts of the COVID-19 pandemic.
Steward’s hospitals, medical centers and physician’s offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change.