Payroll payments for some Steward Health Care employees were delayed Thursday just days after the company filed for bankruptcy, Steward’s president said.
President Mark Rich in a letter to staff members near 8:15 a.m. said company officials were “aware that paychecks were not deposited today as scheduled.”
Rich said the delay was due to a processing error with a Bank of America system. He said all payroll and benefits had been funded and would begin to show up in accounts over the next 24 hours.
“We followed all of Bank of America’s procedures following the Chapter 11 filing and we were assured by them that this would not happen,” Rich said. “We know this is not an easy time for any of you and we apologize for this inconvenience.”
Rich said Steward will cover any late fees incurred by staff as a result of the payroll delay. He continued, thanking staff “for your continued commitment to our patients and communities during this tough time.”
A Steward spokesperson in comments to 7NEWS late Thursday morning reiterated that employees are getting paid.
The spokesperson said Bank of America holds payroll funds and then processes the money to employee’s individual banks.
With this payroll cycle, the spokesperson said there was a glitch with Bank of America that led to delayed payment processing for employees at “select hospitals in Massachusetts” as well as corporate employees and some physicians.
The Texas-based Steward owns eight hospitals in Massachusetts. After months of financial uncertainty, the company filed for bankruptcy early Monday morning.
Gov. Maura Healey, later in the day, said the bankruptcy filing “is a step toward our goal of getting Steward out of Massachusetts.”
Healey and other state officials said they would be sending representatives to Texas to represent Massachusetts interested in the bankruptcy process.
In initial documents filed Monday, Steward officials said they intend to sell the more than 30 hospitals…