Lawmakers Seek Health Care and Retirement Protections for Steward Health Care Workers

Steward Health Care filed for Chapter 11 bankruptcy due to a combination of significant financial challenges, which included mounting debt, declining revenues, and the financial strain from the COVID-19 pandemic.

Members of Congress, led by Sen. Edward Markey of Massachusetts, is seeking reassurances that workers at hospitals owned by Steward Health Care will have their health care and retirement benefits protected.

In a letter to acting Labor Secretary Julie Su on Monday, Markey said Steward’s bankruptcy “poses concerns for the nearly 30,000 workers including nearly 10,000 in Massachusetts, who rely on Steward Health Care for their paychecks, health care plans, and retirement benefits.”

“We write to ask that the U.S. Department of Labor ensure that Steward workers and retirees receive the health care and retirement benefits to which they are entitled. Workers and retirees must be protected from further harm resulting from Steward’s gross financial mismanagement,” Markey wrote.

Causes For Steward Healthcare Bankruptcy:

• High Levels of Debt: Steward Health Care had accumulated a substantial amount of debt over the years. This debt burden became increasingly difficult to manage, particularly as the costs associated with servicing this debt grew.
• Operational Challenges: The healthcare system faced operational difficulties, including high operational costs and inefficiencies within its network of hospitals and medical facilities.
• Impact of COVID-19: The pandemic severely impacted the healthcare industry, leading to a decline in elective procedures and an increase in operating costs. These factors put additional financial pressure on Steward Health Care.
• Declining Revenues: The combination of reduced patient volumes, decreased elective procedures, and other pandemic-related challenges led to a significant drop in revenues.
• Strategic Decisions: Previous strategic decisions, such as acquisitions and expansions, may not have yielded the expected financial returns, further exacerbating the financial strain.