According to a press release posted on its official website in May of this year, Steward Health Care has filed for Chapter 11 bankruptcy protection in the Southern District of Texas as part of its restructuring process. The company, the largest physician-led hospital operator in the United States, must now begin finalizing a financing agreement with Medical Properties Trust. The proposed agreement includes an initial capital commitment of $75 million and up to an additional $225 million under certain conditions.
“Steward has been and will continue to do all we can to continue operating in an extremely challenging health care environment. We are working collaboratively with various parties, officials and stakeholders under court supervision to achieve the best possible outcome for our patients, employees and the communities we serve. We are pleased to have secured new operators for Glenwood and Wadleigh, which will allow us to move forward with the sale of these hospitals and continue to provide high-quality, compassionate care.”
Marc Rich, President, Steward Healthcare
Additionally, Steward Health Care has successfully submitted bids for two hospitals as part of its Chapter 11 bankruptcy restructuring: Pafford Health Systems Inc. has submitted a bid for Wadleigh Regional Medical Center in Hope, Arkansas, and AHS South LLC has submitted a bid for Glenwood Regional Medical Center in West Monroe, Louisiana. The bids, which are pending court approval, are part of Steward’s efforts to sell its hospitals and continue to provide quality patient care amid its financial restructuring.
The sale process, which began prior to Steward’s bankruptcy filing on May 6, 2024, has attracted significant interest from potential buyers. Despite the restructuring, Steward’s hospitals, medical centers and clinics remain open and fully staffed, and the company is working with a variety of advisors and stakeholders to ensure a smooth transition and continued high-quality care for patients and the community.
Additionally, according to NBC Boston, “Carney Hospital in Boston’s Dorchester neighborhood and Nashoba Valley Medical Center in Ayer are scheduled to close around the end of August.”
