FILE – Sen. Edward Markey, Democrat of Massachusetts, speaks during a news conference at the Capitol in Washington, Jan. 25, 2024. A group of Democratic senators led by Sen. Markey is seeking assurances that health insurance and retirement benefits will be protected for employees at hospitals owned by Steward Healthcare Inc. (AP Photo/Maryam Zuhaib, File)
BOSTON (AP) — A caucus of Democrats led by Sen. Edward Markey of Massachusetts is seeking assurances that health insurance and retirement benefits for employees at hospitals owned by Steward Healthcare will be protected.
After announcing its bankruptcy filing last month, Steward said it plans to sell all of its hospital holdings.
In a letter to Acting Labor Secretary Julie Su on Monday, Markey said Steward's bankruptcy “is of concern to approximately 30,000 workers, including approximately 10,000 in Massachusetts, who rely on Steward Healthcare for their paychecks, health insurance and retirement benefits.”
“We have sent a letter to the U.S. Department of Labor urging them to ensure Steward employees and retirees receive the health care and retirement benefits they deserve. Employees and retirees must be protected from further harm resulting from Steward's gross financial mismanagement,” Markey wrote.
A representative for Steward did not immediately respond to an email seeking comment on what steps, if any, the company has taken to ensure employees receive their benefits.
The Dallas-based company, which operates more than 30 hospitals across the country, says its hospitals' day-to-day operations will not be disrupted during the Chapter 11 bankruptcy proceedings.
Markey said many workers who rely on Steward Healthcare for their livelihoods are already facing economic uncertainty and insecurity. In Massachusetts, Steward workers have been delayed in receiving paychecks due to procedural delays after the bankruptcy filing.
Markey and other lawmakers are calling on the Department of Labor to take steps to protect workers, including determining Steward's benefit continuity plan during bankruptcy and in the event of a facility's closure or acquisition, and ensuring health insurance claims are paid throughout the bankruptcy process.
“While Steward and its partners alone bear responsibility for this crisis, resolving this crisis to protect our workers, patients and communities requires the involvement and collaboration of federal, state and local authorities,” Markey said in the letter.
In addition to Massachusetts, Steward employs employees in Arizona, Arkansas, Florida, Louisiana, Ohio, Pennsylvania and Texas.
The letter was also signed by Sens. Sherrod Brown of Ohio, John Fetterman of Pennsylvania, and Independent Sen. Bernie Sanders of Vermont. It was also signed by Democratic Representatives Ayanna Pressley, Stephen Lynch, James McGovern, and Seth Moulton of Massachusetts, and Representative Sheila Jackson Lee of Texas.
Steve LeBlanc, The Associated Press
