Steward Health Care’s Landlord, Medical Properties Trust, Initiates Process to Sell or Find New Tenants for Facilities
Medical Properties Trust (MPT), the landlord of Steward Health Care, has announced plans to sell or find new tenants for facilities operated by the financially troubled hospital chain. This decision comes after Steward reportedly owes MPT $50 million in back rent, making it the real estate investment trust’s largest tenant.
In a statement released alongside MPT’s fourth-quarter and year-end financial results, CEO Edward Aldag expressed optimism about the interest from other hospital operators in taking over the Steward real estate portfolio. MPT is also in negotiations for a bridge loan deal with other lenders to provide additional funding to Steward, with MPT already contributing $20 million.
MPT had purchased Steward’s Massachusetts real estate in 2016 for $1.25 billion, with Steward leasing the properties back. Currently, Steward operates seven acute-care hospitals in Massachusetts, with Norwood Hospital remaining closed since severe flooding in 2020 halted reconstruction efforts.
U.S. Congressman Stephen Lynch revealed that construction at Norwood Hospital has been paused after MPT instructed contractors to stop work. Lynch expressed concerns about the future of the project and the challenges of finding a new operator to take over the facility.
State officials have given Steward a deadline to provide detailed financial information as they monitor the company’s hospitals daily to ensure patient safety. Steward has indicated it is seeking buyers for its Massachusetts hospitals, with Governor Maura Healey calling for the facilities to be transferred to new operators.
In response to the situation, Dr. Michael Callum, a Steward executive vice president, emphasized the company’s commitment to orchestrating a transition that prioritizes the continuity of high-quality medical care in the communities they serve. The future of Steward Health Care and its facilities remains uncertain as stakeholders navigate the complex financial challenges facing the hospital chain.