Steward Health Care Files for Bankruptcy: Massachusetts Responds with Emergency Operations Plan

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Steward Health Care Files for Bankruptcy: Massachusetts Responds with Emergency Operations Plan

Explore how Massachusetts swiftly responds to Steward Health Care's bankruptcy filing with a comprehensive emergency operations strategy.

Steward Health Care, the largest physician-owned hospital operator in the United States and the third-largest hospital system in Massachusetts, has filed for Chapter 11 bankruptcy. The company, which operates eight hospitals in Massachusetts, said it does not expect any interruptions in day-to-day operations and that its hospitals, medical centers, and physician’s offices are open and continuing to serve patients.

Steward's Financial Struggles and Planned Sale

The decision to file for bankruptcy comes amid financial struggles for Steward, which had admitted to being millions in debt in rent, with unpaid contracts and other expenses. In March, news broke that Steward was planning to sell Stewardship Health Inc. and the contracting Steward Health Care Network to OptumCare, a subsidiary of UnitedHealth Group.

Steward has pointed to insufficient reimbursement from Medicare and Medicaid and increased costs of labor and medical supplies as contributing factors to the decision to file for bankruptcy. The Massachusetts Nurses Association has expressed concern about the potential loss of any of these facilities, stating that it would have devastating consequences for hundreds of thousands of residents from the South Shore to southern New Hampshire.

Massachusetts Department of Public Health's Response

In response to Steward’s financial challenges, the Massachusetts Department of Public Health (DPH) has activated its “Emergency Operations Plan,” including a regionally focused “Incident Command System,” to help with healthcare access in eastern Massachusetts. DPH has had monitors in Steward hospitals since January to assess whether the facilities have the necessary supplies, equipment, and staffing to deliver safe and effective care.

The Incident Command System will be led by Gregg Meyer, a practicing primary care physician with extensive experience in hospital operations and crisis management. The system incorporates ongoing external monitoring in all Steward hospitals, enables DPH to rapidly respond to any clinical needs or issues that arise, and fosters increased communication with other regional health care organizations, first responders, and community leaders.

Implications and Continued Patient Care

Governor Maura Healey and other administration officials will hold a press conference Monday morning to discuss the implications of the Steward bankruptcy situation. The Massachusetts Association of Health Plans has stated that patients can continue to receive care at all Steward facilities and that member plans will continue to provide coverage at these facilities.

Despite the bankruptcy filing, Steward Health Care has emphasized that it does not expect any interruptions in day-to-day operations and that its hospitals, medical centers, and physician’s offices are open and continuing to serve patients. The Massachusetts Department of Public Health and other stakeholders are working to ensure patient safety, protect access to care, and preserve jobs during this challenging time for the hospital system.