Steward Health Care, headquartered in Dallas and managing eight Florida hospitals, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The company declared the filing essential to maintaining uninterrupted care across its facilities. Despite the filing, Steward emphasized that hospitals, clinics, and other medical services will remain open.

CEO Ralph de la Torre noted that this decision was made to navigate the increasingly challenging healthcare landscape and secure long-term financial stability. The affected hospitals include Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center, Palmetto General Hospital, Florida Medical Center, Melbourne Regional Medical Center, Rockledge Regional Medical Center, and Sebastian River Medical Center.

Hialeah Mayor Esteban Bovo reassured residents that operations at Hialeah and Palmetto hospitals will continue without disruption. He emphasized that his office would monitor the situation closely to ensure uninterrupted healthcare services for local communities.

Steward acquired its Miami-Dade and Broward hospitals from Tenet Healthcare Corp in 2021 and operates facilities across Arizona, Arkansas, Louisiana, Massachusetts, Ohio, Pennsylvania, and Texas.

The company has secured $75 million in debtor-in-possession financing from Medical Properties Trust, Inc. and may receive up to $225 million more after fulfilling specific conditions. This financing aims to keep operations stable. The company is also working to finalize the sale of its Stewardship Health physician group to Optum, a UnitedHealthcare subsidiary, though the deal has been delayed.

Steward's financial struggles have drawn scrutiny, particularly in Massachusetts, where U.S. Senators Elizabeth Warren and Edward Markey criticized the company's financial practices. Massachusetts Governor Maura Healey accused the company of refusing to submit required financial records.

Steward attributes its financial problems to rising labor and material costs, inflation, reduced government reimbursement rates, and the lingering effects of COVID-19. De la Torre remains confident that, with the court's assistance and additional financing, Steward will stabilize operations and support its hospitals, patients, and staff while emerging from bankruptcy with a more sustainable business model.