Governor Katie Hobbs Commends Federal Court Decision in Steward Health Care Bankruptcy, Ensuring Patient Safety and Access to Quality Care

Governor Katie Hobbs Commends Federal Court Decision in Steward Health Care Bankruptcy, Ensuring Patient Safety and Access to Quality Care

HonorHealth to Take Over Arizona Facilities, Stabilizing Healthcare Services Following Steward Health Care Bankruptcy

PHOENIX, AZ – Governor Katie Hobbs expressed her approval today following a federal court decision in the Steward Health Care bankruptcy case. The ruling prioritizes patient safety and ensures continued access to quality healthcare for Arizonans as HonorHealth, a respected nonprofit healthcare system, assumes control of Steward’s Arizona facilities.

Steward Health Care, which filed for bankruptcy in May, had operated four hospitals in Arizona, causing significant uncertainty for both patients and healthcare employees. The court’s decision transfers daily operational control of Mountain Vista Medical Center, St. Luke’s Hospital in Tempe, Florence Hospital in Florence, and several affiliated outpatient practices to HonorHealth, ensuring continuity of care during this critical transition.

“Arizonans’ access to quality, affordable healthcare should never be jeopardized by corporate mismanagement,” said Governor Hobbs. “Steward Health Care’s failure to act in the best interest of patients required swift intervention. I’m relieved that HonorHealth, a trusted provider, will now take over operations, guaranteeing stability and ensuring communities continue receiving the healthcare they deserve.”


Governor Hobbs also praised her team’s quick response to safeguard vulnerable patients, particularly at St. Luke’s, and reiterated her commitment to monitoring the future of the hospital’s behavioral health services.

“The court’s decision is a pivotal step in restoring confidence in our healthcare system. I will continue to work with HonorHealth to ensure a seamless transition, minimizing disruption for patients and employees alike,” added Governor Hobbs.

The Governor’s Office will continue to support HonorHealth and oversee the transition, ensuring Arizonans across the state have access to reliable healthcare services during this transition period.