Records reviewed by CBS News showed . As a result, hospitals risked a shortage of potentially lifesaving supplies. Massachusetts Gov. Maura Healey’s administration launched a hotline (617-468-2189) and website for patients who have questions.
Steward Florida hospitals hit with lawsuitswww.beckershospitalreview.com › stewar…
Records reviewed by CBS News showed . As a result, hospitals risked a shortage of potentially lifesaving supplies. Massachusetts Gov. Maura Healey’s administration launched a hotline (617-468-2189) and website for patients who have questions.
Steward Health Care, which operates eight hospitals in Massachusetts, filed for bankruptcy Monday
A judge ruled Tuesday that the bankrupt Steward Health Care system can meet Wednesdays payroll for its roughly 9,750 employees in Massachusetts and more than 20,000 others around the country, an early ruling in a court proceeding in which Massachusetts is among hundreds of interested parties.
The operator of the third-largest hospital system in Massachusetts, Steward filed for Chapter 11 bankruptcy in Texas on Monday, seeking legal protection to restructure debt of between $1 billion and $10 billion while leaving its hospitals open. The company operates eight Bay State hospitals and has been sinking under a pile of debt to vendors and its de facto landlord. It has also been feeling the pressure from Massachusetts officials who are focused on making sure Bay Staters have appropriate access to care and that Stewards floundering does not worsen the capacity crunch at Massachusetts hospitals.
Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas held a hearing on initial motions related to Stewards bankruptcy Tuesday, primarily requests from Steward to pay certain bills or meet specific obligations while its more than 100,000 creditors scramble to try to ensure they will be paid. Among the motions was one to authorize (but not require) Steward to pay wages, salaries, employee benefits, expenses, and other compensation while the bankruptcy case moves ahead. Lopez said he was comfortable with the request and approved it after the hearing in the absence of objections from creditors. City, state and federal lawmakers are discussing the impact of Steward Health Cares financial crisis after the health care giants bankruptcy announcement.
“This case feels different. Its real patients who are showing up at the hospital like right now and I want them to feel comfortable that the physician that they are going to see, that there are nothing in the back of their mind other than their treatment and the care that theyre going to receive. I have no doubt the physicians would do their best and would honor their duties,” the judge said. “But Im going to make sure that any concerns are taken off the table, especially when the folks with the money on the line have not objected to this relief.”
An attorney for Steward told the court that the company pays approximately $150 million a month in employee wages, mostly in arrears. And as of Monday, Steward owed approximately $68 million for accrued, but unpaid, wages that had already been earned. As of February, there were 9,753 employees on Stewards payroll in Massachusetts and 6,405 licensed independent practitioners working within Steward hospitals, the state said.
Massachusetts state government was represented at Tuesdays hearing by Andrew Troop, a lawyer who leads the Insolvency & Restructuring Practice Group in the New York office of Pillsbury Winthrop Shaw Pittman. The Amherst College graduate previously represented Massachusetts and other states in the Chapter 11 bankruptcy of Purdue Pharma and has served on the board for Greater Boston Legal Services for more than a decade.
“Health care cases, as everyone has acknowledged, are not your typical cases. This is not an issue for someone in a manufacturing job,” Troop said in support for the wages motion Tuesday. “On this one, your honor, making sure that the people who provide critical care services leave today confident that their base pay is going to be paid in tomorrows payroll is both the right thing to do [and] well within your authority and power to execute on.”
He added, “Vendors are waiting for the outcome of this hearing. Patients are waiting for the outcome of this hearing.”
Steward operates eight hospitals in Massachusetts: St. Elizabeths in Brighton, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen and Haverhill Hospital in Haverhill, Morton Hospital in Taunton, Nashoba Valley Medical Center in Ayer, Norwood Hospital (which is closed as it undergoes restoration work) and St. Annes in Fall River.
FAQ
Is Steward Health Care in financial trouble?
How much debt is Steward Health in?
What is the steward health controversy?
Who is buying Steward Health Care?
Did Steward Health Care pay vendors?
Updated on: January 26, 2024 / 8:13 AM EST / CBS Boston BOSTON – At least six active lawsuits claim Steward Health Care has not paid vendors for supplies and services in months, totaling over $7.5 million. Plus, the group’s landlord, Medical Properties Trust, claims it’s owed $50 million.
Was steward healthcare’s late payment an oversight?
Late payments from Dallas-based Steward Healthcare to its vendors, such as advertising firms and suppliers, were not just an oversight, several former system finance employees told Bloomberg .
Does Steward have unpaid bills?
Earlier this week when Steward filed for bankruptcy, state officials said they’re continuing to monitor Steward’s hospitals daily and urged patients to go to Steward facilities if they need care. Steward’s list of unpaid bills is long and varied, according to court documents.
Is Steward Health care system in trouble?
Steward Health Care System, which owns hospitals in Melbourne and Rockledge, is in trouble. Across the country, hospitals owned by Steward are under fire. In each case, the story is largely the same as the for-profit company leaves bills unpaid and goes silent when pressed by public officials.
You may also like :
https://www.wbur.org/news/2024/05/10/steward-health-care-debts-court-filings-bankruptcy
https://www.healthcaredive.com/news/steward-health-care-mismanagement-lawsuits/710102/