Also: Rescheduled marijuana still faces research roadblocks [Donate ❤️]( [View in Browser](  May 7, 2024 Hi CommonHealth reader, This week, Massachusetts's third-largest hospital operator, Steward Health Care, [filed for Chapter 11 bankruptcy protection](. Itâs a remarkable failure for a company that was founded with the promise of saving struggling hospitals â but later amassed huge amounts of debt and failed to make critical payments to vendors. Stewardâs chief executive, Ralph de la Torre, said the company has âdone everything in its power to operate successfully in a highly challenging health care environment,â and the bankruptcy process will help the company emerge stronger. But many elected officials, including Massachusetts Gov. Maura Healey, blame de la Torre and other executives for the company's debts. They say Stewardâs leaders profited mightily, while hospitals that serve many vulnerable patients floundered. âThis situation stems from and is rooted in greed, mismanagement and lack of transparency on the part of Steward leadership in Dallas, Texas,â Healey told reporters hours after the company filed for bankruptcy Monday. This is a national story for sure; Steward is the country's largest private, for-profit hospital chain and has more than 30 hospitals across eight states. But Steward's roots are in Massachusetts. It was founded here 14 years ago, before expanding nationally and moving its headquarters from Boston to Dallas. So, what now? Here's what to know about the company's bankruptcy: 1. Steward hospitals remain open as usual, for now Health officials in Massachusetts have stressed they are monitoring Steward's hospitals daily, and the facilities are safe for patients. âYou should not drive past [them] if you're having chest pain, if you're a pregnant person about to deliver,â said Dr. Robbie Goldstein, Massachusetts' commissioner of public health. âPlease go to the hospital that's closest to you, go to the hospital that's in your community.â 2. The process will change Steward as we know it Bankruptcy provides a court process to deal with Stewardâs debts and determine what happens to its assets. Over time, the process could result in certain Steward hospitals being sold off and others closing. State officials and legal experts said the process also ensures more transparency around a company that has long been shrouded in secrecy. âOne of the good things about bankruptcy,â Healey said, âis that Steward and its CEO and its management team will no longer be able to lie.â 3. Steward estimates it owes at least $1 billion But the amount could be as much as $10 billion, according to the company's initial court filing. Court records show some of the largest creditors are staffing firms, medical device makers and health technology companies. Steward also owes $28 million in taxes to the IRS and $32 million in COVID pandemic-related loans to the Center for Medicare and Medicaid Services. Bankruptcy experts said additional details are likely to be included in future court filings, so there are good reasons to keep an eye on this case. [Click here to read our full story on all five takeaways]( from Steward's bankruptcy filing. Priyanka Dayal McCluskey
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