NEW DELHI: United State’s largest private healthcare operator, Steward Health Care on Wednesday received a bankruptcy judge’s approval to sell six Massachusetts hospitals, despite taking no profit from the $343 million sale.
The sale was approved by bankruptcy judge Christopher Lopez at a court hearing in Houston, Texas calling it “the best deal that’s on the table.”
Steward’s attorney Candace Arthur told Lopez that the sale will allow the company to limit its loss and minimize the disruption to patients, even though no money would be made.
The money from the sale would be paid to acquire the hospital real estate, owned by Medical Properties Trust and Macquarie. Steward’s other liabilities exceed the modest amount that buyers agreed to pay for its hospital operations and separate assets, Arthur added.
Earlier in 2016, Steward had sold its Massachusetts real estate in a transaction that was answered with criticism by the Massachusetts politicians and US Senators.
Massachusetts supported the sale, agreeing to provide $42 million in funding to the hospitals for September. It had earlier provided a $30 million lifeline to the hospitals.
Under the approved sale agreements, Rhode Island-based Lifespan Health System will acquire Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton for $175 million; Boston Medical Center will acquire Good Samaritan Medical Center in Brockton and St. Elizabeth’s Medical Center in Boston for $140 million; and Lawrence General Hospital will acquire Holy Family Hospitals in Methuen and Haverhill for $28 million.
Steward previously declared closing two other hospitals in Massachusetts and two hospitals in Ohio.
Dallas-based Steward had filed for bankruptcy protection in May with an attempt to sell all its hospitals addressing the $9 billion in debt. Before the announced closures, Steward operated 31 hospitals in eight states.
The sale was approved by bankruptcy judge Christopher Lopez at a court hearing in Houston, Texas calling it “the best deal that’s on the table.”
Steward’s attorney Candace Arthur told Lopez that the sale will allow the company to limit its loss and minimize the disruption to patients, even though no money would be made.
The money from the sale would be paid to acquire the hospital real estate, owned by Medical Properties Trust and Macquarie. Steward’s other liabilities exceed the modest amount that buyers agreed to pay for its hospital operations and separate assets, Arthur added.
Earlier in 2016, Steward had sold its Massachusetts real estate in a transaction that was answered with criticism by the Massachusetts politicians and US Senators.
Massachusetts supported the sale, agreeing to provide $42 million in funding to the hospitals for September. It had earlier provided a $30 million lifeline to the hospitals.
Under the approved sale agreements, Rhode Island-based Lifespan Health System will acquire Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton for $175 million; Boston Medical Center will acquire Good Samaritan Medical Center in Brockton and St. Elizabeth’s Medical Center in Boston for $140 million; and Lawrence General Hospital will acquire Holy Family Hospitals in Methuen and Haverhill for $28 million.
Steward previously declared closing two other hospitals in Massachusetts and two hospitals in Ohio.
Dallas-based Steward had filed for bankruptcy protection in May with an attempt to sell all its hospitals addressing the $9 billion in debt. Before the announced closures, Steward operated 31 hospitals in eight states.