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Steward Health Care files for bankruptcy, affecting five South Florida hospitals – WSVN 7News | Miami News, Weather, Sports

LAUDERDALE LAKES, FLA. (WSVN) – Several South Florida hospitals are facing financial challenges as their parent company files for Chapter 11.

Steward Health Care’s bankruptcy filing will impact five local hospitals, including Palmetto General Hospital in Hialeah, Hialeah Hospital, Florida Medical Center in Lauderdale Lakes, Coral Gables Hospital and North Shore Medical Center in Northwest Miami-Dade. All five fall under Texas-based Steward Health Care.

Nurses at the Florida Medical Center in Lauderdale Lakes protested in 2022, warning the public of the financial problems.

On the Steward Health Care website, they posted a link to court filings and other information related to the “restructuring proceedings.”

The private for-profit group released a statement on the bankruptcy:

Steward Health Care has made every effort to operate successfully in a very challenging healthcare environment. Filing for Chapter 11 restructuring is in the best interests of our patients, physicians, employees and communities at this time.

Dr. Ralph de la Torre, CEO of Steward Health Care

The health care company blames its financial problems on insufficient Medicare and Medicaid reimbursements, along with rising labor and medical costs.

The company said all hospitals, doctors’ offices and other facilities will remain open while it restructures its operations.

Hialeah Mayor Esteban Bovo Jr. issued a statement saying the company had contacted his office and “assured the residents of the city of Hialeah that service from both Hialeah and Palmetto hospitals would not being influenced.”

The Florida Agency for Health Care Administration also ensures continuity and care at all Florida-based hospitals and medical facilities owned by Steward Health Care.

The company says it has received $75 million in special funding and is now receiving federal financial assistance through a third party to support the hospital’s patient care services.

The healthcare company hopes for a rescue package.

The first federal hearing on the company’s bankruptcy filing is scheduled for Tuesday.

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