Steward Health Care Faces Restructuring Troubles

According to a press release on its official website this past May, Steward Health Care has filed for Chapter 11 bankruptcy protection in the Southern District of Texas as part of its restructuring process. The company is the largest physician-led hospital operator in the U.S. and now must begin finalizing a financing deal with Medical Properties Trust. This proposed deal includes $75 million in initial funding and up to $225 million more under certain conditions.

“Steward has done and will continue to do everything it possibly can to continue operating in a very difficult health care environment. We are working collaboratively with various parties, officials and stakeholders in the Court supervised process to obtain the best results we can for our patients, employees, and the communities we serve. We are pleased to have secured new operators for Glenwood and Wadley that we believe will allow the sales of these hospitals to move forward so they can continue to provide high-quality and compassionate care.”

Mark Rich, President, Steward Health Care

Furthermore, Steward Health Care has received successful bids for two hospitals as part of its Chapter 11 bankruptcy restructuring. Pafford Health Systems, Inc. has bid for Wadley Regional Medical Center in Hope, Arkansas, while AHS South LLC has bid for Glenwood Regional Medical Center in West Monroe, Louisiana. These bids, pending court approval, are part of Steward’s effort to sell its hospitals and continue providing quality patient care amidst its financial restructuring.

The sale process, which began before Steward’s bankruptcy filing on May 6, 2024, has attracted significant interest from potential buyers. Despite the restructuring, Steward’s hospitals, medical centers, and physician’s offices remain operational and fully staffed. The company is working with various advisors and stakeholders to ensure a smooth transition and continued high-quality care for its patients and communities.

Furthermore, Carney Hospital in Boston’s Dorchester neighborhood and Nashoba Valley Medical Center in Ayer are scheduled to close around the end of August, according to NBC Boston.