May 22, 2024

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Paychecks for Steward Health Care employees in Massachusetts were delayed after filing for bankruptcy

Paychecks for Steward Health Care employees in Massachusetts were delayed after filing for bankruptcy

Steward Health Care employees’ paychecks were delayed Thursday due to a “processing error,” according to the company, which filed for bankruptcy earlier this week. The Texas-based company, the third-largest hospital system in Massachusetts and one of the state’s largest employers, filed for bankruptcy Monday, seeking legal protection to restructure its debts while leaving its hospitals open. Several Steward employees said early Thursday they had not been paid and shared a letter from Steward Health Care President Mark Rich blaming the delay on a “processing error within the Bank of America system.” “After filing for Chapter 11 and assuring them that this would not happen,” Rich said in the letter, which was sent just after 8 a.m., Rich said payroll and benefits for all team members were funded and would begin showing up in employee accounts during “This is not an easy time for any of you and we recognize the inconvenience caused,” he said, adding that the host will cover any late fees incurred by staff as a result of the delay. The office of Massachusetts Attorney General Andrea Campbell has appointed a Patient Care Ombudsman to advocate for patients and employees during bankruptcy proceedings. The office said in a statement. A spokesman for the Executive Office of Health and Human Services said state officials are aware of the delay and expect employees to receive checks Thursday or Friday. The for-profit, private equity-backed hospital group’s problems exploded to the surface this year with revelations that it owed nearly $50 million in unpaid rent. Steward officials later closed one facility and expressed interest in selling their other properties. According to Reuters, in court documents filed before the hearing, Steward said she had more than $9 billion in total liabilities, including $1.2 billion in loans, and $6.6 billion in long-term debt. Term lease obligations, approximately $1 billion in unpaid invoices from medical vendors and suppliers and $290 million in unpaid employee wages and benefits. Steward’s attorney, Ray Schrock, provided a timeline for the sale of most of its hospitals outside Florida. “We’ve got a deadline of June 25 and an option for all hospitals other than Florida, and then a sale hearing,” Schrock said at the virtual hearing. “We’ll see how the timing goes. We’ll see whether this will be reconsidered or not. We’ll keep our word and do everything we can to keep it.” Steward plans to hold auctions on June 28 for its hospitals. outside Florida and July 30 for its nine Florida hospitals. State officials also launched a website to distribute information about the situation. in Taunton, Nashoba Valley Medical Center in Ayer, and St. Anne’s in Fall River. Norwood Hospital, which was rebuilt, also belonged to the Steward Company. Video below: Steward Hospitals sale timeline The company said it does not expect any interruption in daily operations and that the bankruptcy filing was “a necessary measure to allow the company to continue providing necessary care to its patients in their communities without interruption.” Last week, Massachusetts officials announced the activation of a “plan of operations Emergency” response to the crisis. According to the House News Service, officials last month began private talks and meetings with local health care leaders to help navigate the uncertainty surrounding the Steward crisis, a move Health and Human Services Secretary Kate Walsh said should be ‘Very reassuring’ to those involved about preparation for disruption During a recent Senate oversight hearing, Walsh said officials were preparing for the possibility of Steward filing for bankruptcy and acknowledged there had been some discussions about receivership.

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Steward Health Care employees’ paychecks were delayed Thursday due to a “processing error,” according to the company, which filed for bankruptcy earlier this week.

The Texas-based company, the third-largest hospital system in Massachusetts and one of the state’s largest employers, filed for bankruptcy Monday, seeking legal protection to restructure its debts while leaving its hospitals open.

Several Steward employees said early Thursday they had not been paid and shared a letter from Steward Health Care President Mark Rich blaming the delay on a “processing error within the Bank of America system.”

“We have followed all Bank of America procedures following the Chapter 11 filing and have assured them that this will not happen,” Rich said in the letter, which was sent just after 8 a.m.

Payroll and benefits for all team members have been funded and will begin showing up in employee accounts within the next 24 hours, Rich said.

“We know this is not an easy time for any of you and we understand the inconvenience caused,” Rich said, adding that the host will cover any late fees employees incur as a result of the delay.

The office of Massachusetts Attorney General Andrea Campbell has appointed a Patient Care Ombudsman to advocate for patients and employees during bankruptcy proceedings.

“We will closely review any complaints regarding system employees in Massachusetts not receiving payroll, an issue we take very seriously, and will act accordingly,” the office said in a statement.

A spokesman for the Executive Office of Health and Human Services said state officials are aware of the delay and expect employees to receive checks Thursday or Friday.

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The for-profit, private equity-backed hospital group’s problems exploded to the surface this year with revelations that it owed nearly $50 million in unpaid rent. Supervising officials subsequently closed one facility and expressed interest in selling their other properties.

According to ReutersIn court documents filed before the hearing, Steward said she had more than $9 billion in total liabilities, including $1.2 billion in loans, $6.6 billion in long-term lease obligations, and nearly $1 billion in unpaid bills. From medical vendors and suppliers and $290 million of long-term lease obligations. Unpaid employee wages and benefits.

Steward’s attorney, Ray Schrock, provided a timeline for selling most of its hospitals outside Florida.

“We have a deadline of June 25 and an option for all hospitals other than Florida, and then a sale hearing,” Schrock said at the virtual hearing. “We’ll see how the timing goes. We’ll see whether this will be reconsidered or not. We’ll keep our word and do everything we can to keep it.”

Steward plans to hold auctions on June 28 for its hospitals outside Florida and on July 30 for its nine hospitals in Florida.

State officials too Launched a website To distribute information about the situation.

Steward’s eight hospitals in Massachusetts are St. Elizabeth Hospital in Brighton, Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Holy Family Hospital in Methuen, Haverhill Hospital in Haverhill, Morton Hospital in Taunton, Nashoba Valley Medical Center in Ayer, and St. Louis Hospital . Anne in Fall River. Norwood Hospital, which was being rebuilt, also belonged to Steward.

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Video below: Steward Hospitals sale timeline

The company said it did not anticipate any interruption in daily operations and that the bankruptcy filing was “a necessary measure to allow the company to continue providing needed care to its patients in their communities without interruption.”

Massachusetts officials announced last week the activation of an “emergency operations plan” in response to the crisis.

According to the State Council News Service, officials last month began holding private meetings with local health care leaders to help Navigating uncertainty about the Steward crisis, a move that Health and Human Services Secretary Kate Walsh said should be “very reassuring” to those concerned about preparing for disruption.

During a recent Senate hearingWalsh said officials were preparing for the possibility of Steward filing for bankruptcy and acknowledged there had been some discussions surrounding receivership.