Steward Health Care Plans to Sell Off All Hospitals After Filing for Bankruptcy Protection
Steward Health Care Announces Plans to Sell Hospitals After Filing for Bankruptcy
Steward Health Care, a Dallas-based company operating more than 30 hospitals nationwide, has announced its intention to sell off all its hospitals after filing for bankruptcy protection earlier this week. Despite the financial troubles, the company assures that there will be no interruptions in the day-to-day operations of its hospitals during the Chapter 11 process.
In court filings, Steward revealed that it has initiated a “phased marketing process” for the sale of its hospital facilities, with all hospitals currently being marketed for sale. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, citing the need to continue providing care to patients.
Massachusetts Attorney General Andrea Campbell has expressed concerns about the situation and is advocating for the creation of a Patient Care Ombudsman to protect patients and employees throughout the bankruptcy process. She also has the authority to review any proposed sale under her office’s antitrust powers.
Political figures, including U.S. Sens. Elizabeth Warren and Edward Markey, have criticized Steward’s previous private equity owners for their handling of the company, accusing them of selling it for parts and walking away with significant profits. Massachusetts Gov. Maura Healey has also condemned the situation, attributing it to “greed, mismanagement, and lack of transparency” on the part of Steward’s leadership.
Despite the challenges, Steward is finalizing the terms of “debtor-in-possession financing” from its landlord Medical Properties Trust to secure funding for its operations. CEO Dr. Ralph de la Torre cited insufficient reimbursement from government payers and rising costs as contributing factors to the company’s financial struggles.
In an effort to stabilize its finances, Steward had previously announced a deal to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group. The company remains committed to responsibly transitioning ownership of its Massachusetts-based hospitals as it navigates through the bankruptcy process.