Steward Health Care Files for Chapter 11 Bankruptcy 

Steward Health Care System LLC, the largest private for-profit hospital chain in the United States, has filed for bankruptcy following financial struggles and government scrutiny over hospital closures. The healthcare provider owns dozens of community hospitals, including facilities in Massachusetts, Texas and Florida. The Dallas-based firm sought Chapter 11 protection in the Southern District Court of Texas, listing assets and liabilities between $1 billion and $10 billion. 

Despite the bankruptcy filing, Steward Health intends to continue operating while finalizing a rescue loan with landlord Medical Properties Trust Inc. The restructuring deal with Medical Properties includes initial debtor-in-possession funding of $75 million, with an additional loan of up to $225 million under certain conditions. 

The company’s liquidity crisis worsened as it faced challenges paying vendors and managing operations, leading to the closure of several hospitals, particularly in Massachusetts. The restructuring aims to transition ownership of Massachusetts-based hospitals responsibly while ensuring continuity of care for patients and communities.