MIAMI.- The bankruptcy filing of Steward Health Care, the company that operates eight hospitals in Florida, including Hialeah Hospital and Palmetto Hospital, has set off alarm bells in the south of the state where six of these health centers are located, although the Company officials assure that there will be no interruptions in services.
According to a press release this Monday, May 6, Steward Health Care, based in Dallas, Texas, filed for Chapter 11 bankruptcy in the US Bankruptcy Court, in the Southern District of Texas and affirmed that “hopes that daily operations at hospitals and doctors’ offices will not be interrupted.”
“Steward Health Care did everything in its power to operate successfully in a highly challenging healthcare environment. Filing for Chapter 11 restructuring is in the best interest of our patients, physicians, employees and communities at this time,” said Ralph de la Torre, CEO of Steward Health Care.
Steward Health operates Hialeah Hospital, Palmetto Hospital, Coral Gables Hospital, North Shore Medical Center located in Miami-Dade. Additionally, it operates Florida Medical Center in Broward, Melbourne Regional Medical Center and Rockledge Regional Medical Center in Brevard County and Sebastian River Medical Center in Indian River County.
In this context, Hialeah Mayor Esteban Bovo said in a press release: “My office is fully aware that Steward Health, the company that owns the Hialeah and Palmetto hospitals, filed for Chapter 11 bankruptcy. Therefore, I am in contact with the management team of the hospitals to ensure that the health service they provide to patients is not interrupted.”
“In parallel, I have contacted the Florida Agency for Health Care Administration (AHCA) to ensure that medical care continues at the two Steward facilities. I would like to emphasize that, although these hospitals are private, my office will continue to closely monitor the situation to ensure medical care and keep our residents informed.”
Steward Health is among the largest healthcare organizations in the US with 4,450 facilities and 30,000 employees. It also has hospitals in Arizona, Arkansas, Louisiana, Massachusetts, Pennsylvania, Ohio and Texas. In 2021 it acquired the South Florida hospitals until then operated by Tenet Healthcare Corp.
In Monday’s news release about the bankruptcy filing, Steward Health noted several factors, including “continuing to face challenges created by insufficient reimbursements from government payers as a result of declining reimbursement rates while also facing labor costs.” skyrocketed, higher material and operational costs due to inflation and the negative influence caused by COVID-19 on the system that still persists.”
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