Sen. Brown Voices Concerns about Steward Health Bankruptcy

COLUMBUS, Ohio – U.S. Sen. Sherrod Brown voiced his concerns Friday about the Steward Health Care bankruptcy and potential effect on health care and employees in Trumbull County.

In a letter to Ralph de la Torre, CEO of Steward Health Care System LLC, Brown wrote that the health care system’s recent Chapter 11 bankruptcy filing is causing uncertainty for health care providers, workers and the communities served by both Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland.

The letter states that Steward’s plan to sell all 31 of its hospitals puts the two Trumbull County facilities in jeopardy. Steward Health also operates Sharon Regional Medical Center in Sharon, Pa.

Brown reminded de la Torre of the ramifications of Steward’s decision to close Northside Regional Medical Center in Youngstown after the health care system purchased it in 2017. At that time, 388 employees were laid off.

“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,” Brown wrote. “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.” 

The Business Journal has previously reported that Cain Brothers, a division of Cleveland-based KeyBanc Capital Markets Inc., was retained by Steward in January and has been in the process of marketing Steward’s hospital assets, including those in the Mahoning Valley.

At the time of the bankruptcy filing May 6, Steward reported $9 billion in debt and $6 million in revenue. 

Brown’s full letter can be viewed below.

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