Steward Health Care, the operator of four hospitals in Arizona, has declared bankruptcy, citing mounting financial pressures, including decreased payments from government insurers and rising operational costs. The Dallas-based company, which runs 31 hospitals across eight states, ensured that there would be no interruptions in day-to-day operations during the Chapter 11 process, as described in a written statement procured by FOX 10 Phoenix.

The healthcare provider's struggles aren't confined to Arizona; in Massachusetts, political leaders have attributed the company's turmoil to more than poor market conditions. Senators Elizabeth Warren and Edward Markey blamed previous owners for stripping the company of parts and siphoning off profits, thereby exacerbating its financial instability,. In a statement obtained by 12 News, Massachusetts Gov. Maura Healey blasted the situation as a result of "greed, mismanagement and lack of transparency."

Amid its attempts to avoid a total collapse, Steward Health Care has initiated the sale of all its hospital facilities, a process they began in late January. A filing from Tuesday revealed the company's endeavors to market its hospitals comprehensively. As the company navigates through bankruptcy, they've secured "debtor-in-possession financing" with an immediate $75 million boon, with the potential to net up to $225 million should certain conditions be met, according to the same 12 News report.

Ensuring the legalities of the process and safeguarding patient care, Massachusetts Attorney General Andrea Campbell pushed for a Patient Care Ombudsman role during the bankruptcy proceedings. The AG's office also wields antitrust powers to scrutinize any potential sales, ensuring the stability and competitiveness of the healthcare market. "We would do so in order to best protect access to a competitive and affordable healthcare marketplace," Campbell stated, indicating a willingness to intervene legally if necessary.

Healthcare bankruptcies have surged to a five-year peak with 79 filings in 2023, reflecting a broader trend in the industry's financial woes, as reported by a consulting firm to FOX 10 Phoenix. Steward Health Care CEO Dr. Ralph de la Torre has placed part of the blame on insufficient government reimbursement rates amid escalating costs. With the bankruptcy filing and hospital sales on the horizon, Steward aims to transition ownership of its Massachusetts-based hospitals responsibly.