Bankrupt Steward Health Care sells physician network as Massachusetts hospital seized

STEWARD HEALTH-BANKRUPTCY/:Bankrupt Steward Health Care sells physician network as Massachusetts hospital seized

Reuters
Published17 Aug 2024, 12:10 AM IST
Bankrupt Steward Health Care sells physician network as Massachusetts hospital seized
Bankrupt Steward Health Care sells physician network as Massachusetts hospital seized

By Dietrich Knauth

NEW YORK, Aug 16 (Reuters) - Bankrupt hospital operator Steward Health Care received a bankruptcy judge’s approval on Friday to sell its nationwide physician network to a private equity buyer while its stalled efforts to sell Massachusetts hospitals caused the state to step in and seize one hospital.

U.S. Bankruptcy Judge Christopher Lopez on Friday approved a $245 million sale of physician network Stewardship Health to Rural Healthcare Group, a Kinderhook Industries-owned network of primary care providers that operates in Tennessee and North Carolina. Lopez said at a court hearing in Houston that the deal was the best offer available to Steward, which is trying to sell all of its roughly 30 hospitals separately from the physician network.

Steward had previously planned to sell the physician network to a UnitedHealth Group subsidiary, but that deal fell apart after Steward filed for bankruptcy in May.

Steward told Lopez it has found a buyer for three of its Florida hospitals and it is making progress on efforts to sell six hospitals in Massachusetts.

Steward put all its 31 hospitals up for sale when it filed for bankruptcy in an effort to address its $9 billion debt.

Steward has a $439.4 million offer from Orlando Health Inc for Steward Melbourne Hospital, Steward Rockledge Hospital, and Steward Sebastian River Medical Center, according to court documents. That offer is still subject to higher and better offers.

Steward's attorney Ray Schrock said on Friday the company was "very, very close" to finalizing deals for Massachusetts hospitals, but state officials, unhappy with delays, acted to seize one hospital on Friday.

Massachusetts governor Maura Healey said on Friday the state will take control of Saint Elizabeth’s Medical Center in Boston through eminent domain, to facilitate the transition to a new owner and keep the hospital open.

Steward declined to comment on the state's seizure of Saint Elizabeth's

Steward previously decided to close two hospitals in Massachusetts, and plans to transition its remaining hospitals to new operators.

The company's bankruptcy has drawn scrutiny from Massachusetts officials and U.S. Senators, who criticized the company and its former private equity owners for selling the land under its hospitals to a real estate company, saddling the company with over $6.6 billion in long-term rent obligations and leaving it on shaky financial footing.

A U.S. Senate committee intends to question the company's CEO about Steward's decline at a public hearing in September. (Reporting by Dietrich Knauth; Editing by Leigh Jones and David Gregorio)

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:17 Aug 2024, 12:10 AM IST
Business NewsCompaniesNewsBankrupt Steward Health Care sells physician network as Massachusetts hospital seized

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    164.70
    09:33 AM | 4 OCT 2024
    -2.25 (-1.35%)

    Axis Bank share price

    1,175.75
    09:33 AM | 4 OCT 2024
    0.3 (0.03%)

    Oil & Natural Gas Corporation share price

    294.80
    09:33 AM | 4 OCT 2024
    2.7 (0.92%)

    Vedanta share price

    502.95
    09:33 AM | 4 OCT 2024
    -8.85 (-1.73%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Sapphire Foods India share price

    364.50
    09:33 AM | 4 OCT 2024
    13.9 (3.96%)

    Home First Finance Company India share price

    1,211.80
    09:33 AM | 4 OCT 2024
    29.6 (2.5%)

    Oil India share price

    545.55
    09:33 AM | 4 OCT 2024
    6.7 (1.24%)

    Aptus Value Housing Finance India share price

    345.00
    09:33 AM | 4 OCT 2024
    4.2 (1.23%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,475.000.00
      Chennai
      77,481.000.00
      Delhi
      77,633.000.00
      Kolkata
      77,485.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.88/L0.13
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts