Steward Health Care auction: What assets sold, closed and are still up for grabs (2024)

Odessa Regional Medical Center

Tennessee-based Quorum Health received court approval to purchase the 225-bed hospital during an Oct. 11 federal bankruptcy hearing.

The Tennessee-based health system beganmanaging the hospital on an interim basis on Sept. 11. Quorum operates acute care hospitals and outpatient services in rural and mid-sized markets across the United States.

Quorum and Medical Properties Trust will jointly fund operations at the hospital moving forward. Quorum will pay rent to MPT on a cash basis beginning in 2025.

Scenic Mountain Medical Center

Tennessee-based Quorum Health received court approval to purchase the 146-bed hospital during an Oct. 11 federal bankruptcy hearing.

The Tennessee-based health system beganmanaging the hospital on an interim basis on Sept. 11. Quorum operates acute care hospitals and outpatient services in rural and mid-sized markets across the United States.

Quorum and Medical Properties Trust will jointly fund operations at the hospital moving forward. Quorum will pay rent to MPT on a cash basis beginning in 2025.

Norwood Hospital

Steward will permanently close and abandon its 113-bed hospital and four related satellite facilities on Nov. 5, when the hospital's license to operate expires, the health system said in an Oct. 7 court filing.

Norwood Hospital has been closed due to flooding since January 2020.

"Given ongoing bankruptcy proceedings and Steward’s difficult financial position, reopening the facility is not feasible," a Steward spokesperson said in a statement.

Prior to closing the satellite facilities, Steward will contact local hospitals and outpatient practices to inform them of the closure and discuss procedures for the transferring patients and medical records, according to the filing.

The impacted clinics include Foxboro, Norwood Performance Therapy, Norwood Hospital Cancer Care Center at Foxboro and Guild Imaging Center of Norwood Hospital.

Coral Gables Hospital

Healthcare Systems of America-Florida filed a bill of sale finalizing its purchase ofthe245-bed hospital on Oct. 3.

HSA was named an interim manager of the facility under a Sept. 11 agreement between Steward and Medical Properties Trust.

Florence Hospital

HonorHealth received court approval to purchase the 36-bed hospital during an Oct. 3 hearing, after being named its interim manager on Sept. 11.

The nonprofit, Arizona-based health system operates six hospitals in Phoenix and Scottsdale.

The health system and Medical Properties Trust will jointly fund operations at the hospital moving forward. HonorHealth will pay rent to MPT on a cash basis beginning in 2025.

Florida Medical Center

Healthcare Systems of America-Florida filed a bill of sale finalizing its purchase ofthe 459-bed hospital on Oct. 3.

HSA was named an interim manager of the facility under a Sept. 11 agreement between Steward and Medical Properties Trust.

Hialeah Hospital

Healthcare Systems of America-Florida filed a bill of sale finalizing its purchase ofthe 378-bed hospital on Oct. 3.

HSA was named an interim manager of the facility under a Sept. 11 agreement between Steward and Medical Properties Trust.

Medical Center SE Texas — Port Arthur

Healthcare Systems of America filed a bill of sale on Oct. 3 to finalize its purchase of the 204-bed hospital.

HSA Port Arthur was named as the interim manager for the facility under a Sept. 11agreement between Steward and Medical Properties Trust.

Mountain Vista Medical Center

HonorHealth received court approval to purchase the 178-bed hospital during an Oct. 3 hearing, after being named its interim manager on Sept. 11.

The nonprofit, Arizona-based health system operates six hospitals in Phoenix and Scottsdale.

The health system and Medical Properties Trust will jointly fund operations at the hospital moving forward. HonorHealth will pay rent to MPT on a cash basis beginning in 2025.

North Shore Medical Center

Healthcare Systems of America-Florida filed a bill of sale finalizing its purchase ofthe 738-bed hospital on Oct. 3.

HSA was named an interim manager of the facility under a Sept. 11 agreement between Steward and Medical Properties Trust.

North Shore has had a string of operational difficulties preceding Steward’s bankruptcy. The hospital closed itsneonatal intensive care unit and behavioral health in February and its obstetrics unit in March, resulting in layoffs of 152 employees.

This summer, the FDA ordered the hospital to pauseits mammogram services after failing to meet clinical image quality standards.

Palmetto General Hospital

Healthcare Systems of America-Florida filed a bill of sale finalizing its purchase ofthe 360-bed hospital on Oct. 3.

HSA was named an interim manager of the facility under a Sept. 11 agreement between Steward and Medical Properties Trust.

St. Joseph Medical Center

Healthcare Systems of America filed a bill of sale on Oct. 3 to finalize its purchase of the 792-bed hospital.

HSA St. Josephwas named as the interim manager for the facility under the interim agreement between Steward and Medical Properties Trust on Sept. 11.

Tempe St. Luke's Hospital

HonorHealth received court approval to purchase the 74-bed hospital during an Oct. 3 hearing, after being named its interim manager on Sept. 11.

The nonprofit, Arizona-based health system operates six hospitals in Phoenix and Scottsdale.

The health system and Medical Properties Trust will jointly fund operations at the hospital moving forward. HonorHealth will pay rent to MPT on a cash basis beginning in 2025.

St. Luke's Behavioral Health Center

Nobuyer has yet been announced for the facility. Stewardpushed back itsbid deadline to Sept. 9 for its Arizona hospitals and delayed the sale hearing to“a date to be determined,” according to court documents filed on Aug. 25.

Steward was ordered to suspend operations of the facility on Aug. 14after temperatures inside the hospital reached 99 degrees Fahrenheit, according to an inspectionfrom the Arizona health department.

The suspension notice also cited concerns about health and safety standards in St. Luke’s kitchen, as well as insufficient staffing levels.

The hospital filed an Oct. 1 WARNnoticeto lay off 255 employees.

Good Samaritan Medical Center

Boston Medical Center will purchase537-bedGood Samaritan andSt. Elizabeth’s Medical Center for acombined $140 millioneffective Sept. 30.

The deal cleared the Massachusetts Health Policy Commission’s preliminary review process on Sept. 27, which assessed the deal’s possible impact on health care costs, quality, access and equity. In order to meet the parties’ scheduled Sept. 30 closing date and preserve access to “critical services,” the HPC elected not to proceed with a further review.

Federal regulators, the Massachusetts and Rhode Island attorneys general and the Massachusetts Department of Public Health also cleared the deal, according to the HPC.

The nonprofit academic medical center brokered the transaction with support from Massachusetts Gov. Maura Healey, who first disclosed a sale was in the works inan Aug. 16 press release.

A federal bankruptcy court approved initial sale terms on Sept. 4, however, there was disagreement as to how much, if any, proceeds should flowto Steward’s secured lenders.

At the time,the judge withheld approximately $17 millionfrom the combined Massachusetts hospital deals — the estimated value of hospital furnitures, fixtures and equipment — to possibly allocate to lenders.

That stipulation nearly prevented the deal from closing.

Apollo Global Management, which was set totake nearly all proceedsfrom the Massachusetts sales under initial terms, said it would not sell hospital land and buildings without receiving their full due. New buyers, including BMC, also said they would not complete the transaction without purchasing the land.

In a Sunday hearing, Steward and Massachusetts agreed to foot the bill. The state will fund $5 million — subject to Gov. Healey’s approval — while Steward will use proceeds from adjacent sales to pay lenders, according to a Sept. 30 filing.

Holy Family Hospital - Methuen and Haverhill

LG Newcorp, a Massachusetts nonprofit corporation affiliated with Lawrence General Hospital, will purchase both campuses of Holy Family for approximately $28 million effective Sept. 30.

The deal cleared the Massachusetts Health Policy Commission’s preliminary review process on Sept. 27, which assessed the deal’s possible impact on health care costs, quality, access and equity. In order to meet the parties’ scheduled Sept. 30 closing date and preserve access to “critical services,” the HPC elected not to proceed with a further review.

Federal regulators, the Massachusetts and Rhode Island attorneys general and the Massachusetts Department of Public Health also cleared the deal, according to the HPC.

A federal bankruptcy court approved initial sale terms on Sept. 4, however, there was disagreement as to how much, if any, proceeds might go to Steward’s secured lenders. At the time,the judge withheld approximately $17 millionfrom the combined Massachusetts hospital deals — the estimated value of hospital furnitures, fixtures and equipment — to possibly allocate to lenders.

That stipulation nearly prevented the deal from closing.

Apollo Global Management, which was set totake all proceedsfrom the LGH saleunder initial terms, said it would not sell hospital land and buildings without receiving their full due.LGHsaid they would not complete the transaction without receiving land.

In a Sunday hearing, Steward and Massachusetts agreed to foot the bill to pay Steward’s lenders. The state will fund $5 million — subject to Gov. Healey’s approval — while Steward will use proceeds from adjacent sales to pay lenders, according to a Sept. 30 filing.

Morton Hospital

Rhode Island-based Lifespan Health will purchase144-bed Morton Hospital and St. Anne’s Hospitalfor a combined $175 million on Sept. 30.

The deal cleared the Massachusetts Health Policy Commission’s preliminary review process on Sept. 27, which assessed the deal’s possible impact on health care costs, quality, access and equity. In order to meet the parties’ scheduled Sept. 30 closing date and preserve access to “critical services,” the HPC elected not to proceed with a further review.

Federal regulators, the Massachusetts and Rhode Island attorneys general and the Massachusetts Department of Public Health also cleared the deal, according to the HPC.

Nonprofit Lifespan is the largest health system in Rhode Island, serving a population of over 1.6 million patients annually, according to attorneys representing the system during the Sept. 4 sale hearing. The system operates four hospitals, approximately 50 ambulatory care locations and 83 physician practices spread across Rhode Island and Massachusetts.

Steward was initially set to receive approximately $8.2 million from the sale, while an affiliate of Apollo Global Management, which holds the mortgages on the hospitals, would bring in $166.8 million, according to court documents filed on Aug. 30.

However, Steward’s secured lenders protested the terms during the sale hearing.

At the time, the judge withheld approximately $17 million from the combined Massachusetts hospital deals — the estimated value of hospital furnitures, fixtures and equipment — to possibly allocate to lenders.

That stipulation nearly prevented the deal from closing.

Apollo Global Management, which was set to take all proceeds from the Massachusetts sales under initial terms, said it would not sell hospital land and buildings without receiving their full due. New buyers, including Lifespan, said they would not complete the transaction without receiving land.

In a Sunday hearing, Steward and Massachusetts agreed to foot the bill. The state will fund $5 million — subject to Gov. Healey’s approval — while Steward will use proceeds from adjacent sales to pay lenders, according to a Sept. 30 filing.

St. Anne’s Hospital

Rhode Island-based Lifespan Health will purchase211-bed St. Anne’s Hospital andMorton Hospital for a combined $175 million on Sept. 30.

The deal cleared the Massachusetts Health Policy Commission’s preliminary review process on Sept. 27, which assessed the deal’s possible impact on health care costs, quality, access and equity. In order to meet the parties’ scheduled Sept. 30 closing date and preserve access to “critical services,” the HPC elected not to proceed with a further review.

Federal regulators, the Massachusetts and Rhode Island attorneys general and the Massachusetts Department of Public Health also cleared the deal, according to the HPC.

Nonprofit Lifespan is the largest health system in Rhode Island, serving a population of over 1.6 million patients annually, according to attorneys representing the system during the Sept. 4 sale hearing. The system operates four hospitals, approximately 50 ambulatory care locations and 83 physician practices spread across Rhode Island and Massachusetts.

Steward was initially set to receive approximately $8.2 million from the sale, while an affiliate of Apollo Global Management, which holds the mortgages on the hospitals, would bring in $166.8 million, according to court documents filed on Aug. 30.

However, Steward’s secured lenders protested the terms during the sale hearing.

At the time, the judge withheld approximately $17 million from the combined Massachusetts hospital deals — the estimated value of hospital furnitures, fixtures and equipment — to possibly allocate to lenders.

That stipulation nearly prevented the deal from closing.

Apollo Global Management, which was set to take all proceeds from the Massachusetts sales under initial terms, said it would not sell hospital land and buildings without receiving their full due. New buyers, including Lifespan, said they would not complete the transaction without receiving land.

In a Sunday hearing, Steward and Massachusetts agreed to foot the bill. The state will fund $5 million — subject to Gov. Healey’s approval — while Steward will use proceeds from adjacent sales to pay lenders, according to a Sept. 30 filing.

St. Elizabeth’s Medical Center

Boston Medical Center will purchase282-bed St. Elizabeth's Medical Center and Good Samaritan Medical Centerfor acombined $140 millioneffective Sept. 30.

The deal cleared the Massachusetts Health Policy Commission’s preliminary review process on Sept. 27, which assessed the deal’s possible impact on health care costs, quality, access and equity. In order to meet the parties’ scheduled Sept. 30 closing date and preserve access to “critical services,” the HPC elected not to proceed with a further review.

Federal regulators, the Massachusetts and Rhode Island attorneys general and the Massachusetts Department of Public Health also cleared the deal, according to the HPC.

The nonprofit academic medical center brokered the transaction with support from Massachusetts Gov. Maura Healey, who first disclosed a sale was in the works inan Aug. 16 press release.

A federal bankruptcy court approved initial sale terms on Sept. 4, however, there was disagreement as to how much, if any, proceeds should flowto Steward’s secured lenders.

At the time,the judge withheld approximately $17 millionfrom the combined Massachusetts hospital deals — the estimated value of hospital furnitures, fixtures and equipment — to possibly allocate to lenders.

That stipulation nearly prevented the deal from closing.

Apollo Global Management, which was set totake nearly all proceedsfrom the Massachusetts sales under initial terms, said it would not sell hospital land and buildings without receiving their full due. New buyers, including BMC, also said they would not complete the transaction without purchasing the land.

In a Sunday hearing, Steward and Massachusetts agreed to foot the bill. The state will fund $5 million — subject to Gov. Healey’s approval — while Steward will use proceeds from adjacent sales to pay lenders, according to a Sept. 30 filing.

Wadley Regional Medical Center

Christus Health Ark-La-Tex, part of Irving, Texas-based Christus Health, received court approval to purchase the 123-bed facility for approximately $4.5 million during a sale hearing on Sept. 24.

Christus Health Ark-La-Tex is a nonprofit rehabilitation hospital also based in Texarkana. The hospital was declared the stalking horse bidder for the facility on Sept. 3, setting the floor price for auction.

The bid deadline passed without Steward receiving another qualified bid for the facility, prompting Steward to cancel its auction, according to a Sept. 19 court filing.

Prior to entering bankruptcy, Steward had broken ground on a$227 million new campus at Wadley. However, construction paused in February amid Steward’s financial difficulties.

Medical Center of Southeast Texas — Beaumont

An affiliate of Texas-based Christus Healthwill take over operationsof thecurrently shuttered 224-bed hospital, pending court approval, according to a press release issued Sept. 17.

Steward closed the Beaumont, Texas-based facility in February 2024, citing a severe underutilization of services. Should the deal close, a spokesperson for Christus Health told Healthcare Dive the system plans to reopen the hospital "after the start of the new year."

The health system will sign a 15-year triple-net lease to rent the property from Global Medical REIT, a real estate investment trust. Annual base rent will run Christus $2.9 million and increase every seven years at a rate of 2.5%, according to the relase.

Christus Health is a Catholic, nonprofit system that operates 60 hospitals in Texas, Louisiana, New Mexico, Chile, Colombia and Mexico. The health system plans to use the facility for robotic surgery, orthopedic care and emergency services, according to the release.

Glenwood Regional Medical Center

Steward received approval to sell the 278-bed hospital to AHS South for $500,000 during a bankruptcy hearing on Sept. 17.The new operator will assume certain liabilities and enter into a new lease agreement with Medical Properties Trust, according to the asset purchase agreement.

AHSwas first announced as a possible buyer on July 21. During the auction process, Steward received three bids for the Glenwood facility — including a $1 million bid for Glenwood's hospital operations.

However, the highest bid was conditioned upon MPT agreeing to sell the hospital real estate to the new buyer for $11 million. The undisclosed party withdrew their bid in July, stating negotiations with MPT over sale terms had reached an "impasse."

AHS is expected to keep on most of Glenwood's approximate 700 employees post-transition, according to testimony from Steward's chief restructuring advisor John Castellano.

The sale will also immediately curb what Castellano called "significant" earnings before interest, taxes, depreciationand amortization losses associated with the facility, which ran Steward about $28 million for the first seven months of 2024.

However, the deal received pushback from Louisiana State Rep. Mike Echols, whotook to social platform Xto warn that a new MPT lease agreement would likely lead to a repeat of old problems for Glenwood. He doubled down during a Sept. 12 Senate subcommittee hearing.

"I do want to make sure that after this panel is over, that organizations like Medical Properties Trust cannot continue to fund other bad actors," Echols testified. "They've got people they've worked with for decades that they'll fund, they'll come in and have the same mismanagement."

Wadley Regional Medical Center at Hope

Steward received court approval for Arkansas-based Pafford Health Systems to purchase 79-bed Wadley on Sept. 12 forapproximately $200,000.

Pafford also agreed to fund payroll accrued as of Sept. 1, offering Steward additional liquidity, an attorney representing Steward said during the hearing.

Hillside Rehabilitation Hospital

Insight Foundation of Hillside received court approval to manage 69-bed hospitalon an interim basis during a bankruptcy hearing on Sept. 11. The facility was initially set to close on Sept. 20 due to a lack of qualified bidders.

The reversal of fortune was cheered by labor groups, including the Ohio Nurses Association.

Insight Foundation and Medical Properties Trust will jointly fund operations at the hospital moving forward. Insight Foundation will pay rent to MPT on a cash basis beginning in 2025.

Trumbull Regional Medical Center

Insight Foundation of Hillside received court approval to manage 346-bed hospitalon an interim basis during a bankruptcy hearing on Sept. 11. The facility was initially set to close on Sept. 20 due to a lack of qualified bidders.

The reversal of fortune was cheered by labor groups, including the Ohio Nurses Association.

Insight Foundation and Medical Properties Trust will jointly fund operations at the hospital moving forward. Insight Foundation will pay rent to MPT on a cash basis beginning in 2025.

Melbourne Regional Medical Center

Orlando Health received court approval to buy Steward’s Space Coast Florida hospitals, including 96-bed Melbourne Regional Medical Center, for approximately $439 million during a U.S. federal bankruptcy hearing on Sept. 10. The facilities are Steward's "most valuable hospitals," according to testimony from the health system's chief restructuring advisor.

Physicians from the Space Coast hospitals and counsel for the U.S. government wrote to the court and spoke during the sale hearing, respectively, in support of the sale.

The health system operates 17 hospitals, 10 free-standing emergency rooms and more than 375 outpatient facilities, according to a news release. The system has recently been expanding, including a $910 million deal with Tenet Healthcare in August to purchase a majority stake in five Alabama hospitals.

Steward said in August it expects to use the majority of proceeds from the transaction to pay its lenders. However, exact figures are still up in the air as Steward attempts to finalize a multi-party “global settlement” with its landlord and creditors that would, among other things, sever Medical Properties Trust’s claim to the hospitals’ real estate and allocate proceeds from the sale to Steward.

The MPT-Steward deal is necessary for Orlando Health to move forward as the hospitals’ next buyer, according to court documents filed by MPT on Sept. 8. Orlando Health made its Aug. 14 bid contingent upon Medical Properties Trust releasing the hospitals’ real estate to new buyers, the landlord said. MPT and Steward expect to present a deal on Sept. 11.

Rockledge Regional Medical Center

Orlando Health received court approval to buy Steward’s Space Coast Florida hospitals, including 298-bed Rockledge Regional Medical Center, for approximately $439 million during a U.S. federal bankruptcy hearing on Sept. 10. The facilities are Steward's "most valuable hospitals," according to testimony from the health system's chief restructuring advisor.

Physicians from the Space Coast hospitals and counsel for the U.S. government wrote to the court and spoke during the sale hearing, respectively, in support of the sale.

The health system operates 17 hospitals, 10 free-standing emergency rooms and more than 375 outpatient facilities, according to a news release. The system has recently been expanding, including a $910 million deal with Tenet Healthcare in August to purchase a majority stake in five Alabama hospitals.

Steward said in August it expects to use the majority of proceeds from the transaction to pay its lenders. However, exact figures are still up in the air as Steward attempts to finalize a multi-party “global settlement” with its landlord and creditors that would, among other things, sever Medical Properties Trust’s claim to the hospitals’ real estate and allocate proceeds from the sale to Steward.

The MPT-Steward deal is necessary for Orlando Health to move forward as the hospitals’ next buyer, according to court documents filed by MPT on Sept. 8. Orlando Health made its Aug. 14 bid contingent upon Medical Properties Trust releasing the hospitals’ real estate to new buyers, the landlord said. MPT and Steward expect to present a deal on Sept. 11.

Sebastian River Medical Center

Orlando Health received court approval to buy Steward’s Space Coast Florida hospitals, including Sebastian River Medical Center, for approximately $439 million during a U.S. federal bankruptcy hearing on Sept. 10. The facilities are Steward's "most valuable hospitals," according to testimony from the health system's chief restructuring advisor.

Physicians from the Space Coast hospitals and counsel for the U.S. government wrote to the court and spoke during the sale hearing, respectively, in support of the sale.

The health system operates 17 hospitals, 10 free-standing emergency rooms and more than 375 outpatient facilities, according to a news release. The system has recently been expanding, including a $910 million deal with Tenet Healthcare in August to purchase a majority stake in five Alabama hospitals.

Steward said in August it expects to use the majority of proceeds from the transaction to pay its lenders. However, exact figures are still up in the air as Steward attempts to finalize a multi-party “global settlement” with its landlord and creditors that would, among other things, sever Medical Properties Trust’s claim to the hospitals’ real estate and allocate proceeds from the sale to Steward.

The MPT-Steward deal is necessary for Orlando Health to move forward as the hospitals’ next buyer, according to court documents filed by MPT on Sept. 8. Orlando Health made its Aug. 14 bid contingent upon Medical Properties Trust releasing the hospitals’ real estate to new buyers, the landlord said. MPT and Steward expect to present a deal on Sept. 11.

Carney Hospital

Boston-based 159-bed Carney closed at the end of Augustafter a U.S. federal bankruptcy court approved Steward’s decision to shutter the facility.

Steward said the facility failed to attract a qualified buyer at auction. Carney, which employs approximately 903 workers, reported a year to dateearnings before interest, taxes, depreciation and amortization loss of $14.7 million through May and had very low patient volumes.

The health system said that keeping Carneyopen risked its ability to continue financing operations at other facilities.

The closure prompted layoffs of 753 workers. MassachusettsSenators have pressed Steward to pay out accumulated paid time off to impacted workers and honor severance amounts in collective bargaining agreements.

Carney shuttered despite Steward failing to comply with Massachusetts’ regulatory process, which requires health systems to offer 120 days notice of intent to close.

Nashoba Valley Medical Center

Nashoba Valley Medical Center closed at the end of Augustafter a U.S. federal bankruptcy court approvedSteward’s decision to shutter the 46-bed facility.

During a bankruptcy hearing on July 31, U.S. Bankruptcy Judge Christopher Lopez called the decision to close Nashobalegally appropriate and proper, yet “painful.”

Steward said the facility failed to attract a qualified buyer at auction. Nashoba, which employs approximately 562workers, reported a year-to-date earnings before interest, taxes, depreciation and amortization loss of $2.3 million through May and had very low patient volumes.

The health system said keeping Nashoba open risked its ability to continue financing operations at other facilities.

Steward will layoff490 workers. Lawmakershave pressed Steward to pay out accumulated paid time off to impacted workers and honor severance amounts in collective bargaining agreements.

Nashoba closed within a month of the judge’s closure authorization — despiteMassachusetts’ regulatory processrequiring health systems to provide 120 days notice of intent to close.

Sharon Regional Medical Center

Steward saidPennslyvania nonprofit health systemMeadville Medical Centeris a possible buyer for 184-bed Sharon Regional Medical Center.

BothMeadville and Steward want money from Pennsylvania to get the deal across the finish line.

Meadville, which submitted a non-binding letter of interest to purchase Sharon Regional on Aug. 12, said it will not use any of its own funds for the acquisition, according to a report from The Herald.MMC will also not agree to take over Steward’s leases with Medical Properties Trust.

Steward told the state in August that it would need $1.5 million in financial supportto keep Sharon Regional running through September.Pennsylvania called the ask “unreasonable” in its own filing, and said itwould need guarantees Sharon would not closein exchange for financial support.

On Aug. 22,a judge ordered Steward to hold offon closing the facility until at least September, imploring the parties to work together to come to a financial arrangement.

A deal with MPT may keep Sharon open, according to comments made bySteward’s attorneys during a bankruptcy hearing on Aug. 30. The deal would transfer hospital operations to the landlord in exchange for MPT releasing billions of claims against the health system. AU.S. federal bankruptcy court will consider the deal on Sept. 10.