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Bankrupt Steward Health approved to sell six Massachusetts hospitals at a loss
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Bankrupt Steward Health approved to sell six Massachusetts hospitals at a loss
Sep 6, 2024 12:45 PM

NEW YORK, Sept 4 (Reuters) - 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 ( MPW )

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.

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