Steward to Hand Off Hospital Operations Under Pact With MPT
- Steward said it’s transferring hospitals to new operators
- Senate committee to probe firm’s bankruptcy at Sep. 12 hearing
The ambulance entrance of the Steward Health Care System Easton Hospital in Easton, Pennsylvania.
Photographer: Hannah Yoon/BloombergThis article is for subscribers only.
Bankrupt Steward Health Care won initial approval of a settlement with its landlord Medical Properties Trust Inc. that will resolve billions of dollars in lease obligations and hand over more than a dozen hospitals to new managers, averting their potential closing.
Judge Christopher Lopez said Wednesday he’d give interim approval to the settlement, a critical step to transitioning Steward hospitals to new operators. The pact also provides a path to distributing $395 million generated from the sale of Steward’s northern Florida hospitals to company lenders and lower ranking unsecured creditors.