Steward Health Care, a healthcare provider based in Texas, has filed for bankruptcy in a federal court. The company has cited reasons such as rising labor costs, inflation, and insufficient government reimbursement for its financial troubles. Under Chapter 11 bankruptcy protection, Steward will maintain control of its business operations while reorganizing its finances with a court-approved plan. The company has secured $75 million in initial funding to support the reorganization.

In Massachusetts, where several hospitals are operated by Steward Health Care, the company has faced criticism from the state’s congressional delegation, Governor Maura Healey’s administration, and others for failing to disclose the full extent of its financial troubles. The Massachusetts Nurses Association and healthcare workers union 1199SEIU expressed concerns about the potential impact of any hospital closures in the region, warning that it could have devastating consequences for residents.

Massachusetts Secretary of Health and Human Services Kate Walsh stated that the Healey administration has been preparing for Steward’s bankruptcy declaration. They are working with the company and potential partners to ensure an orderly transfer of ownership that protects access to care, jobs, and stabilizes the healthcare system. The unions are urging officials and industry leaders to take immediate action to preserve the facilities and transition to more stable ownership.

The situation is still developing as stakeholders work to find solutions to ensure continued access to healthcare services in the region where many local hospitals were acquired by Steward Health Care from a not-for-profit local chain overseen by the Boston Archdiocese in 2010.