Dallas-based Steward Well being Care filed for Chapter 11 chapter and is figuring out phrases of debtor-in-possession financing from actual property funding agency Medical Properties Belief for preliminary funding of $75 million and as much as a further $225 million upon the satisfaction of sure circumstances.
The corporate stated that it didn’t anticipate any interruptions in its day-to-day operations through the Chapter 11 course of and that its hospitals, medical facilities and doctor’s places of work stay open.
Steward has confronted important monetary bother in Massachusetts, the place it now operates eight hospitals. The corporate revealed a plan to promote its doctor community to Optum in a discover to the Massachusetts Well being Coverage Fee on March 26.
“The deal is a part of Steward’s effort to climb out of a monetary gap that has shaken the Massachusetts healthcare business,” WBUR in Boston reported on the time. “Public officers and healthcare leaders are deeply involved the corporate might shutter medical providers amid its monetary troubles, which might scale back sufferers’ entry to care and destabilize the state’s healthcare system.”
Since January, the Commonwealth’s Division of Public Well being has had screens in Steward hospitals to evaluate whether or not the amenities have the mandatory provides, tools, and staffing to ship secure and efficient care. These screens stay in place.
On Could 3, the Division of Public Well being activated its Emergency Operations Plan, together with a regionally centered Incident Command System to steer a coordinated response to scientific high quality and entry in Jap Massachusetts, within the context of Steward Hospitals’ monetary challenges.
“This week, the Massachusetts Division of Public Well being activated its Emergency Operation Plan as a part of our ongoing dedication to make sure affected person security, shield entry to care and protect jobs. This subsequent step is a part of our continued response to Steward Well being Care’s monetary challenges,” stated Well being and Human Companies Secretary Kate Walsh, in a press release.
“Prior to now a number of months we now have secured bridge financing and progressed the sale of our Stewardship Well being enterprise with a view to assist stabilize operations in any respect of our hospitals,” stated Ralph de la Torre, M.D., CEO of Steward, in a press release.
“With the delay in closing of the Stewardship Well being transaction, Steward was compelled to hunt different strategies of bridging its operations. With the extra financing on this course of, we’re assured that we’ll maintain hospitals open, equipped, and working in order that our care of our sufferers and our staff is maintained,” de la Torre added. “By working collaboratively with stakeholders on this court-supervised managed atmosphere, and having the advantage of our earlier strategic efforts, Steward shall be higher positioned to responsibly transition possession of its Massachusetts-based hospitals, maintain all of its hospitals open to deal with sufferers, and make sure the continued care and repair of our sufferers and our communities.”
