A gaggle of Democratic members of Congress led by Senator Edward Markey of Massachusetts wants assurances that the health and retirement advantages of employees at hospitals owned by Steward Health Care shall be protected.
Steward said last month that it plans to sell all hospitals after the announcement that has filed for insolvency protection.
In a letter to acting Labor Secretary Julie Su on Monday, Markey said Steward’s bankruptcy “raises concerns for the nearly 30,000 workers, including nearly 10,000 in Massachusetts, who rely on Steward Health Care for their payroll, health insurance plans and retirement benefits.”
“We write to ask the U.S. Department of Labor to ensure that Steward’s workers and retirees receive the health and pension benefits to which they are entitled. Workers and retirees must be protected from further harm resulting from Steward’s gross financial mismanagement,” Markey wrote.
Representatives for Steward didn’t immediately reply to an email in search of comment on what steps, if any, the corporate has taken to make sure employees receive their advantages.
The Dallas-based company, which operates greater than 30 hospitals nationwide, has said it doesn’t expect any disruption to its hospitals’ day-to-day operations throughout the Chapter 11 process.
Markey said many employees who depend on Steward Health Care for his or her livelihoods are already facing financial uncertainty and anxiety. In Massachusetts, he said, after the bankruptcy filing, payroll payments to Steward employees were delayed attributable to processing delays.
Markey and the opposite lawmakers are calling on the Labor Department to take steps to guard employees, including establishing Steward’s plan to proceed advantages during bankruptcy and within the event of a facility’s closure or takeover, and ensuring payment for medical advantages throughout the bankruptcy process.
“While responsibility for this crisis rests solely with Steward and its corporate partners, a resolution to this crisis that protects workers, patients and communities requires the involvement and collaboration of federal, state and local agencies,” Markey said within the letter.
In addition to Massachusetts, Steward employs staff in Arizona, Arkansas, Florida, Louisiana, Ohio, Pennsylvania and Texas.
The letter was also signed by Democratic Senators Sherrod Brown of Ohio and John Fetterman of Pennsylvania, and independent Senator Bernie Sanders of Vermont. Democratic Representatives Ayanna Pressley, Stephen Lynch, James McGovern and Seth Moulton, all of Massachusetts, also signed the letter.
