Ohio-based U.S. Senator Sherrod Brown has penned a letter to Steward Health demanding the company put together a plan to ensure continuity of care following its filing for Chapter 11 bankruptcy.

The letter states that after purchasing three Ohio facilities in 2017, Steward immediately closed Northside Hospital in Youngstown, and with the company filing for bankruptcy, two more Valley hospitals, Trumbull Regional Medical Center and Hillside Rehabilitation Hospital now face uncertainty putting nearly 1,000 workers at risk.

Brown slams Steward stating that these issues stemmed from "corporate greed" and "financial mismanagement"

"Across all of its facilities, Steward owes $290 million in employee wages and benefits, nearly $1 billion to suppliers and medical vendors, and $6.6 billion in long-term rent obligations, among other debt obligations. These debts have led to unacceptable failures in the health care system, including employees going without pay, hospitals not having necessary supplies and equipment, and coercion of local vendors who have been forced to continue operations to keep essential hospital functions operational without pay," Brown said.

Brown goes on to reference Steward's bid deadline of June 27 for the sale of its hospitals. If this deadline is not reached, the hospitals could close abruptly affecting not only the workers, but the patients and their families too, as well as local stakeholders.

"I have heard from Ohioans that a sudden, abrupt closure of these facilities will not allow an opportunity for interested buyers to adequately absorb an increased volume of patients or support a smooth transition for your committed workforce. Therefore, I urge you to work with the local community on potential options to ensure a seamless transition for those impacted, and take every step possible to identify alternative sources for both health care services and employment opportunities," Brown said.

The full letter can be read below:

"Dear Dr. de la Torre:
Steward Health Care System (Steward)’s recent filing for Chapter 11 bankruptcy will have an immediate, negative impact on the residents of northeast Ohio. I write to urge you work with local stakeholders, including state and local officials, union leadership, and other regional stakeholders to ensure patients and workers are prioritized in the proceedings, and that your workers and local vendors are made whole as you cease operations in Ohio. Steward – a for-profit, private equity backed company – purchased three facilities in Ohio in 2017. Under your leadership, Steward made the decision to abruptly close Northside Regional Medical Center in Youngstown shortly after acquiring the hospital, laying off 388 employees and sending shock waves throughout the community, where Northside had been a fixture since 1929. The other two facilities under Steward’s control – Trumbull Regional Medical Center (Warren, OH) and Hillside Rehabilitation Hospital (Howland, OH) – provide critical health care services and jobs to the residents of their communities, who will now face uncertainty due to your company’s extreme financial mismanagement. Earlier this month, Steward announced its plans to sell all thirty-one of its hospitals, including
Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, which provide care to thousands of patients in the Mahoning Valley and employ, collectively, nearly 1,000 workers who will be affected by the consequences of corporate greed and financial mismanagement. Across all of its facilities, Steward owes $290 million in employee wages and benefits, nearly $1 billion to suppliers and medical vendors, and $6.6 billion in long-term rent obligations, among
other debt obligations. These debts have led to unacceptable failures in the health care system, including employees going without pay, hospitals not having necessary supplies and equipment, and coercion of local vendors who have been forced to continue operations to keep essential hospital functions operational without pay."


"It is my understanding that Steward has set a bid deadline for June 27, 2024 for the sale of its hospitals – or communities could face abrupt closures. I am concerned that this timeline does not give the local community – including patients and their families, employees, and other local stakeholders – time to engage on a path forward that will provide economic certainty and ensure continuity of care. I have heard from Ohioans that a sudden, abrupt closure of these facilities will not allow an opportunity for interested buyers to adequately absorb an increased volume of patients or support a smooth transition for your committed workforce. Therefore, I urge you to work with the local community on potential options to ensure a seamless transition for those
impacted, and take every step possible to identify alternative sources for both health care services and employment opportunities. I remain ready to support efforts to ensure a positive outcome for the residents of Warren and Howland and their surrounding communities, who have relied on these facilities as a source of trusted care in the community for decades. Please keep my office updated on next steps, and do not hesitate to reach out if my office can be of assistance.
Sincerely,
Sherrod Brown
United States Senator"

21 News has reached out to a spokesperson for Steward Health in the Mahoning Valley for a response and is waiting to hear back.