Steward Health Care files for bankruptcy amid financial crisis

Colin A. Young

The operator of the third largest hospital system in Massachusetts, and one of the state’s largest employers, declared bankruptcy early Monday morning.

Steward Health Care, which operates eight Bay State hospitals and has been sinking under a pile of debt to vendors and its de facto landlord, filed for Chapter 11 bankruptcy in Texas, seeking the legal protection to restructure its debt while leaving its hospitals open.

The company said it does not expect any interruption to day-to-day operations and that the bankruptcy filing was “a necessary measure to allow the Company to continue to provide necessary care to its patients in their communities without disruption.”