Dallas-Based Health Care System Seeks Bankruptcy Protection

Dallas-based Steward Health Care System LLC has filed for Chapter 11 bankruptcy protection. The company owns St. Joseph Medical Center, Houston’s oldest hospital (see photo), as well as Medical Center of Southeast Texas in Port Arthur. In total, Steward currently has 31 hospitals across eight states, with roughly 400 facilities, 4,500 physicians, 3,600 staffed beds and more than 30,000 employees. The company moved its headquarters from Boston to Dallas in 2019.

The for-profit, physician-owned system listed both its estimated assets and its estimated liabilities in the $1 billion to $10 billion range.

The company is seeking $75 million from Medical Properties Trust in debtor-in-possession financing, with the potential for an additional $225 million from the trust if it meets certain conditions.

Steward Health Care cited a desire to not affect its day-to-day operations, as it does not expect any interruptions to its service. It cited “challenges” with lower reimbursement rates from government payers as it faces higher labor and operations costs.