by
Gus Iversen, Editor in Chief | May 13, 2024
St. Elizabeth Medical Center, a Steward Family Hospital (Photo courtesy of St. Elizabeth Medical Center)
Steward Health Care has put all of its 31 U.S. hospitals up for sale to address its $9 billion in debt.
The announcement, the latest in a string of bad news for the health system, was made on Tuesday at a court hearing in Houston,
Reuters reported.
Earlier in the week, the Dallas-based health system filed for Chapter 11 bankruptcy in the Southern District of Texas with debtor-in-possession financing support from Medical Properties Trust, which will provide $75 million initially, with the potential for an additional $225 million based on certain conditions.
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The trouble for Steward began early in the year, when Medical Properties Trust, the largest hospital landlord in the country, announced that the health system had fallen about $50 million behind on year-end rent.
In April, Medical Properties Trust offloaded five Steward-operated Utah hospitals for around $1.1 billion in cash proceeds. The hospitals were leased to Englewood, Colo.-based Catholic Health Initiatives Colorado, part of Chicago-based CommonSpirit Health.
In court documents filed before yesterday's hearing, Steward revealed it had over $9 billion in total liabilities, including $1.2 billion in loans, $6.6 billion in long-term rent obligations, nearly $1 billion in unpaid bills from medical vendors and suppliers, and $290 million in unpaid employee wages and benefits, Reuters reported.
