Five South Florida hospitals, including Palmetto General Hospital in Hialeah and North Shore Medical Center in Northwest Miami-Dade, are facing financial trouble as their parent company, Steward Health Care, files for Chapter 11 bankruptcy. This news comes after nurses at Florida Medical Center in Lauderdale Lakes protested in 2022 warning the public of the financial troubles.
Despite the bankruptcy filing, Steward Health Care assures that all hospitals, doctors’ offices, and other facilities will remain open as they restructure their operations. The company has received $75 million in special funding to help sustain patient care services and is hoping to receive a bailout.
On their website, Steward Health Care provided a link with court filings and other information related to the “restructuring proceedings.” The private for-profit group released a statement on the bankruptcy, stating that they have done everything in their power to operate successfully and that filing for Chapter 11 restructuring is in the best interest of their patients, physicians, employees, and communities at this time. The CEO, Dr. Ralph de la Torre, stated that insufficient Medicare and Medicaid reimbursement, along with rising labor and medical supply costs, are to blame for the financial troubles.
Hialeah Mayor Esteban Bovo Jr. stated that the company reached out to his office and assured residents that the service of both Hialeah and Palmetto hospitals will not be affected. The Florida Agency for Health Care Administration also ensures the continuity and care at all Florida-based hospitals and medical facilities owned by Steward Health Care.
