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Since Steward Health Care filed for Chapter 11 bankruptcy protections in May, the Dallas-based health system has been racing to sell off its hospital portfolio and physician group, Stewardship Health, in what is one of the largest provider restructurings in recent history.
Steward operates 31 hospitals across eight states — Arizona, Arkansas, Florida, Louisiana, Massachusetts, Ohio, Pennsylvania and Texas — and entered bankruptcy proceedings intending to market, auction and finalize asset sales within three months, according to court documents.
The pressure for an expedient sale came both from lenders, who tied financing to Steward meeting sales deadlines, and from operational constraints. Prior to entering bankruptcy, Steward had amassed $9 billion in debt, and Steward attorneys have warned the court the system does not have the liquidity to continue funding hospital operations through the fall.
Despite the urgency, the sales process has been riddled with setbacks. Auction timelines have been revised almost weekly, buyers have backed out of deals and Steward, which once was optimistic it could keep all facilities open during restructuring, has already had to close some hospitals.
The health system blames delays on its properties’ varying levels of desirability as well as conflict with its landlord and creditor, Medical Properties Trust. The health system pays the real estate investment trust and an affiliated company $341 million annually in rent — a cost buyers are hesitant to assume, according to court documents.
Steward and MPT spent the summer locked in fierce mediation sessions and, in late August, MPT filed notice threatening to block hospital sales if negotiations continued to stall.
Healthcare Dive is tracking the status of Steward’s sale process below, including where hospitals have sold and closed. The database will also track which hospitals are in the auction process and either accepting bids from buyers or awaiting a sale hearing in bankruptcy court.
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Emily Olsen 
Ricky Zipp 
Susanna Vogel