Can’t Pay Won’t Pay

Rodriguez, a 35-year-old factory worker, died following medical malpractice after giving birth at NSMC, a hospital acquired by Steward Health. Expert witnesses indicated that the medical team failed to recognize critical blood readings and administered inappropriate treatments, leading to her death. On January 9, the day her case was set for trial, NSMC offered a $4 million settlement, but the payment was never made due to Steward's bankruptcy filing on May 6. Steward had not been making required premium payments to its malpractice insurer, TRACO, which complicated the situation further. The bankruptcy proceedings revealed that NSMC had over $462 million in unsecured claims, including the Rodriguez settlement and debts to various entities. The hospital system faced more than 500 outstanding malpractice and wrongful death claims, raising concerns about the viability of compensation for affected parties. The bankruptcy case is presided over by Judge Christopher Lopez, who has been criticized for his connections to law firms involved in the case. The legal maneuvers surrounding the bankruptcy have raised questions about the integrity of the process, especially given the significant number of claims against Steward. As the case unfolds, the future of the claims against Steward remains uncertain, with many plaintiffs likely to receive minimal compensation. The situation highlights systemic issues within the healthcare system and the consequences of financial mismanagement in medical institutions.