Steward Health Care, the nation’s largest physician-led hospital operator, announced today its successful finalization of a financing deal with Medical Properties Trust. This agreement comes as Steward initiates a voluntary Chapter 11 restructuring process to navigate ongoing financial challenges.
Under the terms of the deal, Steward will receive initial funding of $75 million, with the potential for an additional $225 million pending certain conditions. This financing is crucial for Steward to maintain its operations and continue providing essential care to communities across the United States.
Dr. Ralph de la Torre, Chief Executive Officer of Steward, emphasized that the Chapter 11 restructuring is a strategic move to ensure uninterrupted patient care amidst a complex healthcare landscape. Despite this restructuring, Steward reassures patients, physicians, and employees that day-to-day operations will proceed without disruption.
“The decision to file for Chapter 11 restructuring reflects our commitment to the well-being of our patients, employees, and communities,” stated Dr. de la Torre. “With the support of our stakeholders and the additional financing secured, we are confident in our ability to sustain operations and navigate this challenging period.”
The need for restructuring stems from various factors, including inadequate reimbursement from government payors, rising labor and operational costs, and the lingering effects of the COVID-19 pandemic. Steward aims to expedite the Chapter 11 process with a focus on long-term financial sustainability.
Stakeholders seeking information about the restructuring process can access resources provided by Steward, including a dedicated information line and online filings.
As Steward Health Care progresses through this restructuring phase, it remains steadfast in its mission to deliver quality healthcare services and promote wellness across communities nationwide.
We reached out to inquire about the Texarkana construction project but have not received a reply.
For inquiries, please contact: StewardInfo@ra.kroll.com Phone: (888) 505-1257 (toll-free) or (646) 893-5546 (international)
Court filings and additional information can be found at: https://restructuring.ra.kroll.com/Steward
Legal counsel: Weil, Gotshal & Manges LLP Financial advisory services: AlixPartners, LLP Investment banking services: Lazard Frères & Co. LLC, Leerink Partners LLC, Cain Brothers
About Steward Health Care: Steward Health Care is a pioneering healthcare company committed to transforming the delivery of healthcare services. With a network of over 30 hospitals across multiple states, Steward is dedicated to creating healthier lives and thriving communities through innovative healthcare solutions.
