Steward Finds Patrons for Hospitals in Arkansas Louisiana
Steward Well being Care has reportedly discovered patrons for the sale of its two hospitals in Arkansas and Louisiana, US.
The corporate filed for Chapter 11 chapter safety in Might of this 12 months. The case is being heard within the U.S. Chapter Court docket for the Southern District of Texas.
The corporate additionally introduced the sale of all its 31 hospitals within the nation.
In accordance with Bloomberg, Steward has now mentioned it has discovered patrons for Glenwood Regional Medical Middle in Louisiana and Wadley Regional Medical Middle in Arkansas.
The gross sales come as the corporate faces a bipartisan Senate investigation into its monetary practices.
Pafford Well being Programs and a subsidiary of American Healthcare Programs have agreed to purchase the hospitals for $200,000 and $500,000, respectively, and can assume sure liabilities, the report mentioned.
Entry essentially the most complete firm profiles in the marketplace, powered by GlobalData. Save hours of analysis. Acquire a aggressive edge.
Firm Profile – Free Pattern
Your obtain e mail will arrive shortly
We’re satisfied of the distinctive high quality of our firm profiles. Nonetheless, we would like you to take advantage of helpful determination to your firm, so we provide a free pattern which you can obtain by submitting the shape beneath
By GlobalData
These agreements nonetheless must be authorized by a chapter decide, however are meant to maintain the hospitals working below new possession.
The well being system has been actively advertising its property whereas below the scrutiny of state and federal lawmakers.
Bloomberg highlighted that the Senate Well being Committee has unveiled plans to subpoena Steward CEO Ralph de la Torre to testify concerning the firm's chapter and the monetary choices that led to it.
Senators Bernie Sanders and Invoice Cassidy have expressed their intention to research the circumstances surrounding Steward's monetary downfall.
They’re notably within the position of Cerberus Capital Administration, the corporate's former majority shareholder, within the monetary troubles.
Cerberus and de la Torre based Steward in 2010 after buying six hospitals from a nonprofit well being system. The corporate has expanded quickly since then.
In 2020, Steward's administration acquired a stake in Cerberus by issuing a $350 million convertible bond and later borrowed $335 million to repay this debt.
Bloomberg mentioned Cerberus responded to the investigation by saying its proprietor helped save struggling hospitals.
