Steward ordered to pay nearly $1B in Utah malpractice case

Utah Third District Court Judge Patrick Corum has ordered Dallas-based Steward Health Care to pay $951 million to a family after finding the health system liable for medical malpractice for birth injuries sustained during the 2019 delivery of a child at its former West Valley City, Utah-based Jordan Valley Medical Center, The Salt Lake Tribune reported Aug. 27.

Steward, which sought Chapter 11 protection in May 2024, sold the hospital and four other Utah-based facilities to Chicago-based CommonSpirit Health in 2023.

Anyssa Zancanella was admitted to Jordan Valley after going into labor while visiting Salt Lake County, Utah, according to court documents obtained by the Tribune. The filings said that in-training nurses administered excessive Pitocin doses to Ms. Zancanella and failed to respond to fetal distress signs while an on-call physician slept nearby. A cesarean section was not performed on her until more than 24 hours later.

Azaylee, Ms. Zancanella’s daughter, was flown by helicopter to Salt Lake City-based Primary Children’s Hospital for intensive care, where she was diagnosed with metabolic acidosis, an excess of acid in the blood that can indicate asphyxia before or during birth. 

The delayed intervention deprived Azaylee, now five years old, of oxygen, which resulted in permanent brain damage, seizures, limited speech and the need for lifelong care, according to the filings.

In 2021, the family filed a lawsuit against Steward. The health system then denied the lawsuit allegations in May 2024. 

Mr. Corum issued the damages, which are the largest in Utah’s history, in an early August ruling to Ms. Zancanella and her family, and called the hospital “the most dangerous place on the planet” for the delivery. Had Steward not withdrawn from the case and stopped participating in proceedings, Mr. Corum said the award might have been higher.

It remains uncertain whether the family can collect the funds, due to Steward’s bankruptcy status and outstanding debts of billions to creditors. The health system has 90 days from Aug. 8 to appeal.

Becker’s has reached out to Steward for comment and will update this story should more information become available. 

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