By Dietrich Knauth
rNEW YORK (Reuters) – Steward Well being, which operates 31 hospitals in eight U.S. states, filed for Chapter 11 chapter in Texas on Monday, aiming to safe a brand new mortgage from its landlord Medical Properties (NYSE:) Belief.
Steward, the most important personal physician-owned for-profit healthcare community within the U.S., mentioned it will proceed serving sufferers as regular throughout its chapter.
Steward will search as much as $300 million in financing from Medical Properties Belief, after failing to shortly shut a sale of its doctor group Stewardship Well being. The corporate is asking for $75 million to start out its chapter case, with as much as $225 million at a later date.
“With the delay in closing of the Stewardship Well being transaction, Steward was pressured to hunt various strategies of bridging its operations,” Steward CEO Ralph de la Torre mentioned Monday.
“With the extra financing on this course of, we’re assured that we’ll maintain hospitals open, provided, and working in order that our care of our sufferers and our workers is maintained,” de la Torre added in an announcement.
Steward workers 4,500 main and specialty care physicians with 3,600 staffed beds and practically 30,000 workers. Steward Well being Care offers care to greater than two million sufferers yearly.
The corporate not too long ago closed a hospital in Massachusetts. State officers and politicians have mentioned it didn’t disclose the extent of its monetary troubles till they have been deep sufficient to imperil medical care in eight remaining hospitals it operates within the commonwealth.
Massachusetts Governor Maura Healey mentioned in a Monday press convention that her staff has been working to reduce the chapter’s affect on sufferers, and she or he would assist an orderly chapter sale away from Steward’s “failed administration staff.”
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“In the end, it is a step towards our purpose of getting Steward out of Massachusetts,” Healey mentioned.
Steward’s court-supervised chapter will present transparency into the corporate’s funds, in order that its “failed administration staff” will “now not have the ability to lie” about its money owed, the governor added.
Steward filed for chapter with between $1 billion and $10 billion in liabilities, in line with its Chapter 11 petition filed in Houston, Texas chapter courtroom.
