May 21, 2024
Timeline of Steward Health Care’s path to bankruptcy

BECAUSE OF TRACK WORK. THIS WILL BE THE CASE THROUGH MAY 10TH. DOUG. ALL RIGHT, BRIANNA, THANK YOU. WE’RE FOLLOWING THIS BREAKING NEWS THIS MORNING. STEWARD HEALTH CARE HAS NOW FILED FOR CHAPTER 11 BANKRUPTCY. THE SYSTEM OPERATES EIGHT HOSPITALS IN MASSACHUSETTS. IN A PRESS RELEASE THAT WAS PASSED OUT OVERNIGHT, STEWARD SAYS IT’S FINALIZING THE TERMS FOR THE $75 MILLION IN FUNDING FROM ITS LANDLORD. STEWARD DOESN’T EXPECT ANY INTERRUPTIONS TO DAILY OPERATIONS. THAT’S WHILE THEY GO THROUGH THE BANKRUPTCY COURT. THE MASSACHUSETTS NURSING ASSOCIATION SAYS THE DECLARATION SHOULD QUOTE, EMBOLDEN THE ADMINISTRATION. THE LEGISLATURE, THE HEALTH CARE INDUSTRY AND ALL THOSE WHO VALUE THE HEALTH OF OUR COMMUNITIES TO IMMEDIATELY TAKE WHATEVER STEPS ARE NEEDED TO ENSURE THE PRESERVATION OF THESE FACILITIES. AND THIS IS JUST IN FROM THE MASSACHUSETTS HEALTH AND HUMAN SERVICES SECRETARY, KATE WALSH, QUOTE, THE HEALEY DRISCOLL ADMINISTRATION IS WORKING WITH STEWARD AND ANY POTENTIAL PARTNERS TO SUPPORT AN ORDERLY TRANSFER OF OWNERSHIP THAT PROTECTS ACCESS

Timeline of Steward Health Care’s path to bankruptcy

Steward Health Care, the troubled Dallas-based company with eight Massachusetts hospitals, filed for Chapter 11 bankruptcy protection early Monday.The for-profit, private equity-backed hospital group’s troubles exploded into view this year with the revelation that it owed about $50 million in unpaid rent. Steward officials subsequently closed one facility and have expressed interest in selling their other holdings.Hospital officials say the company’s remaining hospitals, seven of which are operational, will stay open during the bankruptcy process along with medical centers and physician’s offices.How did we get here? Steward’s troubles have developed over several years, although they didn’t become clear until recently. The saga includes catastrophic weather, legal disputes, business dealings gone wrong and politics. Timeline:2010: Steward’s precedessor buys Caritas Christi hospital system. 2011: Steward buys Quincy Medical in bankruptcy court. June 29, 2013: Filthy conditions, neglected patients found at Quincy Medical Center Nov. 2014: Steward shuts down financially troubled Quincy Medical Center.June 28, 2020: Norwood Hospital inundated by catastrophic flooding, resulting in closure. June 22, 2021: Steward announces plans to rebuild Norwood Hospital. June 28, 2022: Exterior demolition of Norwood Hospital begins. Feb. 7, 2023: Transformer room fire at Signature Healthcare Brockton Hospital leaves Steward’s Good Samaritan Medical Center as the only operational hospital in Brockton. Jun. 1, 2023: Quincy-based Compass Medical closes, months after being ordered to pay more than $16 million in damages Steward after a partnership between the two companies turned ugly. Steward said it had not been paid. Jun. 9, 2023: Worker seriously injured in 2-story fall at Norwood Hospital construction site.Dec. 5, 2023: Citing financial difficulties, Steward announces plan to close New England Sinai Hospital in Stoughton.Dec. 18, 2023: Steward is sued by the federal government over the alleged violation of the law and for allegedly submitting false claims to Medicare, based on a whistleblower complaint. Jan. 19, 2024: Another hospital group expresses concerns about potential closures. Jan. 26, 2024: Steward reportedly seeks to sell 4 hospitals. Lawmaker say officials were blindsided by the announcement. Jan. 31, 2024: Haverhill mayor likens Steward’s financial crisis to a ‘Ponzi scheme.’Feb. 2, 2024: Steward announces bridge financing deal, which they said would give the company time to transfer ownership of one or more of its hospitals to other operators. Feb. 14, 2024: Gov. Maura Healey demands action plan, information from Steward. Feb. 20, 2024: Healey calls for Steward to sell ASAP. Feb. 21, 2024: Congressman and state officials tour Steward facilities. Feb. 23, 2024: Steward Health Care confirms interest in ‘orderly departure’ from Massachusetts.Feb. 26, 2024: Healey said financial records supplied by Steward fell short of what was requested and hadn’t been audited.Mar. 8, 2024: Southcoast Health expresses interest in purchasing St. Anne’s Hospital.Mar. 27, 2024: Steward discloses a plan to sell its network of physicians to United Health Group.Apr. 1, 2024: New England Sinai Hospital officially closed. Apr. 3, 2024: Steward CEO Ralph de la Torre skips Senate hearing.May 3, 2024: Massachusetts launches “emergency operations plan” for hospitals. May 6, 2024: Steward files for bankruptcy.

Steward Health Care, the troubled Dallas-based company with eight Massachusetts hospitals, filed for Chapter 11 bankruptcy protection early Monday.

The for-profit, private equity-backed hospital group’s troubles exploded into view this year with the revelation that it owed about $50 million in unpaid rent. Steward officials subsequently closed one facility and have expressed interest in selling their other holdings.

Hospital officials say the company’s remaining hospitals, seven of which are operational, will stay open during the bankruptcy process along with medical centers and physician’s offices.

How did we get here? Steward’s troubles have developed over several years, although they didn’t become clear until recently. The saga includes catastrophic weather, legal disputes, business dealings gone wrong and politics.

Timeline:

  • 2010: Steward’s precedessor buys Caritas Christi hospital system.
  • 2011: Steward buys Quincy Medical in bankruptcy court.
  • June 29, 2013: Filthy conditions, neglected patients found at Quincy Medical Center
  • Nov. 2014: Steward shuts down financially troubled Quincy Medical Center.
  • June 28, 2020: Norwood Hospital inundated by catastrophic flooding, resulting in closure.
  • June 22, 2021: Steward announces plans to rebuild Norwood Hospital.
  • June 28, 2022: Exterior demolition of Norwood Hospital begins.
  • Feb. 7, 2023: Transformer room fire at Signature Healthcare Brockton Hospital leaves Steward’s Good Samaritan Medical Center as the only operational hospital in Brockton.
  • Jun. 1, 2023: Quincy-based Compass Medical closes, months after being ordered to pay more than $16 million in damages Steward after a partnership between the two companies turned ugly. Steward said it had not been paid.
  • Jun. 9, 2023: Worker seriously injured in 2-story fall at Norwood Hospital construction site.
  • Dec. 5, 2023: Citing financial difficulties, Steward announces plan to close New England Sinai Hospital in Stoughton.
  • Dec. 18, 2023: Steward is sued by the federal government over the alleged violation of the law and for allegedly submitting false claims to Medicare, based on a whistleblower complaint.
  • Jan. 19, 2024: Another hospital group expresses concerns about potential closures.
  • Jan. 26, 2024: Steward reportedly seeks to sell 4 hospitals. Lawmaker say officials were blindsided by the announcement.
  • Jan. 31, 2024: Haverhill mayor likens Steward’s financial crisis to a ‘Ponzi scheme.’
  • Feb. 2, 2024: Steward announces bridge financing deal, which they said would give the company time to transfer ownership of one or more of its hospitals to other operators.
  • Feb. 14, 2024: Gov. Maura Healey demands action plan, information from Steward.
  • Feb. 20, 2024: Healey calls for Steward to sell ASAP.
  • Feb. 21, 2024: Congressman and state officials tour Steward facilities.
  • Feb. 23, 2024: Steward Health Care confirms interest in ‘orderly departure’ from Massachusetts.
  • Feb. 26, 2024: Healey said financial records supplied by Steward fell short of what was requested and hadn’t been audited.
  • Mar. 8, 2024: Southcoast Health expresses interest in purchasing St. Anne’s Hospital.
  • Mar. 27, 2024: Steward discloses a plan to sell its network of physicians to United Health Group.
  • Apr. 1, 2024: New England Sinai Hospital officially closed.
  • Apr. 3, 2024: Steward CEO Ralph de la Torre skips Senate hearing.
  • May 3, 2024: Massachusetts launches “emergency operations plan” for hospitals.
  • May 6, 2024: Steward files for bankruptcy.

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