canada africa partner reservation US hospital network Steward files for bankruptcy, seeks new loan

US hospital network Steward files for bankruptcy, seeks new loan

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Steward Health, which operates thirty hospitals in nine US states, filed for bankruptcy in Texas on Monday, with the aim of obtaining a new loan from landlord Medical Properties Trust.

The private hospital chain said it would continue to serve patients as normal during its bankruptcy. Steward has sought short-term financing to sell its Stewardship Health physician group, but the sale did not materialize as quickly as planned, forcing it to seek up to $225 million in financing from Medical Properties Trust.

“Steward was forced to find alternative methods to bridge its operations,” Steward CEO Ralph de la Torre said Monday. “With the additional funding in this process, we are confident that we will keep hospitals open, stocked and operational, ensuring we continue to care for our patients and our employees,” de la Torre added in a statement.

Steward recently closed a hospital in Massachusetts, where state officials and politicians have said it did not disclose the extent of its financial problems until they were deep enough to jeopardize medical care. Massachusetts Secretary of Health and Human Services Kate Walsh said Monday that the state is preparing for a possible bankruptcy and would work toward “an orderly transition of ownership that protects access to care, preserves jobs and stabilizes our health care system.”

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