Some Dallas-based Steward Health Care employees did not receive their May 9 paychecks on time due to a "processing error" with Bank of America after the health system filed for Chapter 11 bankruptcy May 6.
A May 9 email to employees from Steward President Mark Rich, obtained by Becker's, detailed how the payroll was "mistakenly delayed" and that both payroll and benefits for all employees had been funded and would show in their accounts in the next 24 hours.
The news comes after Steward recently shared that it had put all 31 of its hospitals up for sale and is $9 billion in debt.
"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," Mr. Rich said in the email. "We know this is not an easy time for any of you and we apologize for this inconvenience."
The delay was not systemwide and Steward's payroll has been entering employee accounts steadily since the incident, a spokesperson for Steward told Becker's.