Bankrupt Steward Health approved to sell six Massachusetts hospitals at a loss
Steward Health Care, the largest private hospital operator in the U.S., received a bankruptcy judge’s approval on Wednesday to sell six Massachusetts hospitals, despite taking no profit from the $343 million sale.
U.S. Bankruptcy Judge Christopher Lopez approved the sales as “the best deal that’s on the table,” at a court hearing in Houston, Texas.
The sale will allow Steward to stem its losses and minimize the disruption to patients, even though the company won’t make any money from the sale, Steward’s attorney Candace Arthur told Lopez.
Most of the money from the sales will be paid to acquire the hospital real estate, which is owned by Medical Properties Trust and Macquarie. Steward’s other liabilities exceed the modest amount that buyers agreed to pay for its hospital operations and separate assets, Arthur said.
Steward previously sold its Massachusetts real estate in a 2016 transaction that has been criticized by Massachusetts politicians and U.S. Senators.
Massachusetts supported the sale, agreeing to provide $42 million in funding to the hospitals for September. Massachusetts had previously provided a $30 million lifeline to the hospitals.
Under the approved sale agreements, Rhode Island-based Lifespan Health System will acquire Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton for $175 million; Boston Medical Center will acquire Good Samaritan Medical Center in Brockton and St. Elizabeth’s Medical Center in Boston for $140 million; and Lawrence General Hospital will acquire Holy Family Hospitals in Methuen and Haverhill for $28 million.
Steward previously announced the closure of two other hospitals in Massachusetts and two hospitals in Ohio.
Dallas-based Steward filed for bankruptcy protection in May, attempting to sell all its hospitals to address $9 billion in debt. Before the announced closures, Steward operated 31 hospitals in eight states.
