Steward Health Care, the operator of Sebastian River Medical Center, has filed for Chapter 11 bankruptcy protection. The Dallas-based healthcare provider cited the measure was necessary to sustain patient care amidst financial challenges.
According to a statement released by the company on Monday, Steward Health Care emphasized its commitment to maintaining day-to-day operations without disruption. The filing, made in the U.S. Bankruptcy Court for the Southern District of Texas, marks a strategic maneuver to safeguard patient care and community services.
“Steward Health Care has done everything in its power to operate successfully in a highly challenging health care environment. Filing for Chapter 11 restructuring is in the best interests of our patients, physicians, employees and communities at this time,” Ralph de la Torre, chief executive officer of Steward, said in a prepared statement.
For the past year, speculation has swirled regarding the financial stability of Sebastian River Medical Center, with rumors suggesting that the hospital was facing challenges meeting payroll for its staff. Among the rumors were reports of approximately 50 nurses being let go from their positions, alongside claims of physicians departing due to alleged payment issues.
While most physicians we interviewed during this period confirmed receiving their full pay, they left the hospital to explore other opportunities. Many chose to expand their practices to include outpatient care, a decision potentially influenced by concerns over the hospital’s financial situation.
The company owns several other Florida hospitals, including Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center, and Palmetto General Hospital in Miami-Dade County.
Steward Health Care has unveiled strategic plans for debtor-in-possession financing to manage the financial impact of the bankruptcy proceedings. The company has secured an initial $75 million from Medical Properties Trust, Inc., with the potential for an additional $225 million, subject to certain conditions. This proactive approach demonstrates the company’s commitment to its financial obligations.
The bankruptcy filing reflects broader challenges within the healthcare sector, compounded by economic uncertainties and evolving regulatory landscapes. As the company begins to restructure, its primary focus remains to deliver quality healthcare services and uphold its commitment to patient well-being.
The company said there will be uninterrupted service for patients and communities reliant on Steward Health Care’s facilities.
