Steward Health Care Secures Funding To Keep Hospitals Running

Steward Health Care has managed to gather the necessary financing that will keep its Massachusetts hospitals running. The funding will also provide the company time to consider the possible transfer of its medical centers’ ownership to other entities.

The announcement came in an email to the company’s 16,000 employees. Steward has confirmed a major financial deal with the goal of stabilizing the company’s fluctuating economic status. The funds are expected to start streaming in shortly.

One of the significant aids the funding will provide is the revival of nearly all elective cases. Furthermore, it ensures the continual operation of all Steward hospitals in Massachusetts. Contrary to some reports, Steward isn’t planning on closing any of its hospitals in the state. However, bridge financing will afford Steward the needed time to ponder over transferring one or more of its hospitals to other operators.

Meanwhile, Steward is also progressing in a mergers and acquisitions process, intending to bring a significant equity partner to its physician organization. This organization is separate from its hospitals and comprises a network of doctors. Steward has already received several substantial bids in this process. The bridge financing will aid the company in closing the M&A process and offer the necessary capital to establish a strong nationwide physician group.

Steward’s financial situation has been increasingly difficult recently, leading to conversations with state officials in Massachusetts. Such issues might hinder Steward from continuing its services at its nine Massachusetts hospitals. However, the company is grateful for employee commitment during these trying times and is actively coordinating with state authorities.

Before encountering these issues, the company had been downsizing, which became evident when it announced plans to close its rehabilitation hospital in Stoughton in December. The company is now considering whether it needs to close additional facilities or services and has sought state assistance.

Steward, employing around 16,000 people in Massachusetts, operates nine hospitals caring for about 200,000 patients annually. It caters to a wide-ranging region from the Merrimack Valley to the South Coast, majorly treating government-insured patients in underprivileged communities.

Steward attributes part of its struggle to the relatively low rates it receives for treating government-insured patients. The company believes that other community hospitals are experiencing similar problems. These challenges have caused Steward some legal confrontations over unpaid bills and even led to the repossession of important equipment.

Despite this, Steward maintains its role in providing healthcare to underserved communities and is determined to navigate these hurdles while ensuring minimal disruption to patient care.