Steward Health Care files for Chapter 11 bankruptcy

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By , Christina Hager, Michael Kaplan Updated on: May 7, 2024 / 9:37 AM EDT / CBS Boston Steward Health Care files for bankruptcy Steward Health Care files for Chapter 11 bankruptcy 04:43 BOSTON – Steward Health Care, the struggling health care provider that relied on backing from private equity investors to quickly acquire dozens of community hospitals, including facilities in Massachusetts, Texas and Florida, announced Monday that it is filing for bankruptcy.
Steward, which is millions of dollars in debt, said it has "commenced an in-court restructuring process through the filing of voluntary petitions for relief" under Chapter 11 of the U.S.
"The Company is finalizing the terms of debtor-in-possession financing from Medical Properties Trust for initial funding of $75 million and up to an additional $225 million upon the satisfaction of certain conditions acceptable to Medical Properties Trust," Steward said in a statement.
"Steward hospitals remain open, and patients should not hesitate to seek care," said Massachusetts Health and Human Services Secretary Kate Walsh in a statement, adding that the state "is working with Steward and any potential partners to support an orderly transfer of ownership that protects access to care, preserves jobs and stabilizes our health care system."