Steward Health Care, a bankrupt healthcare provider, has announced plans to sell all 31 of its hospitals in the United States in an effort to address its staggering $9 billion in total liabilities. The company, which filed for bankruptcy protection recently, aims to finalize these transactions by the end of the summer.
Despite the financial challenges, Steward's attorneys have assured that the goal is to keep all hospitals operational in the long term. They emphasized the commitment to ensuring that no communities served by these hospitals are left without care.
Steward's financial woes include over $9 billion in liabilities, comprising $1.2 billion in loans, $6.6 billion in long-term rent obligations, nearly $1 billion in unpaid bills from medical vendors, and $290 million in outstanding employee wages and benefits.
The company had hoped to avoid bankruptcy by selling its physician group, Stewardship Health Care, to UnitedHealth subsidiary Optum Care. However, regulatory delays thwarted this plan, leading to the current bankruptcy filing.
During a court hearing, Steward was granted permission to borrow $75 million from Medical Properties Trust, with plans to secure an additional $225 million later in the bankruptcy process. The company intends to hold auctions for its hospitals on June 28 for those outside of Florida and on July 30 for its nine hospitals in Florida.
Steward's attorney emphasized that the company aims to avoid a rushed sale of its assets and believes there is significant value to be realized from these transactions.
