Steward Health Care Declares Bankruptcy, to Sell 8 Florida Hospitals

Steward Health Care System LLC has filed for Chapter 11 bankruptcy protection and will sell off its Florida hospitals. Steward runs eight hospitals in Florida, including Melbourne and Rockledge Regional Hospital, as well as in Sebastian, Coral Gables, Lauderdale Lakes, Miami and two in Hialeah. In total, Steward currently has 31 hospitals across eight states, with roughly 400 facilities, 4,500 physicians, 600 staffed beds and more than 30,000 employees.

The for-profit, physician-owned system listed both its estimated assets and its estimated liabilities in the $1 billion to $10 billion range.

The company is seeking $75 million from Medical Properties Trust in debtor-in-possession financing, with the potential for an additional $225 million from the trust if it meets certain conditions.

Steward Health Care cited a desire to not affect its day-to-day operations, as it does not expect any interruptions to its service. It cited “challenges” with lower reimbursement rates from government payers as it faces higher labor and operations costs.

The company will auction its Florida hospitals June 30.

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