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May 10, 2024

Steward Health Care Files for Chapter 11 and Places For Sale Sign on Hospitals

On May 6, 2024, Steward Health Care filed for Chapter 11 bankruptcy seeking to restructure its operations in an attempt to continue long-term sustainable operations at its 30+ medical facilities located across Arizona, Arkansas, Florida, Louisiana, Massachusetts, Ohio, Pennsylvania, and Texas. Steward blamed its filing largely on challenges related to “decreasing reimbursement rates” from “government payors,” compounded by increased labor and supply costs and a delay in closing Steward’s sale of its Stewardship Health line of business.

Subsequent to its Chapter 11 filing, Steward’s bankruptcy attorneys reported that Steward has put its 31 hospitals up for sale to help address its $9 billion in liabilities, with a goal of finalizing any transactions by the end of the summer.

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