The hospital operator is said to owe more than $50 million to landlords and contractors. At the same time, the company is closing hospitals in Texas and Massachusetts.
Dallas — Dallas-based hospital operator Steward Healthcare System is facing multiple lawsuits alleging it has not paid landlords and vendors millions of dollars in exchange for rent, services and supplies.
Some of those debts include the group's landlord, Medical Property Trust (MPT)said it must pay about $50 million in unpaid rent from Steward.
Earlier this month, MTP said: The stewards clarified that they had postponed some rent payments for September and October, but continued to make some monthly rent payments. However, MPT said that as of December 31, 2023, Steward was $50 million in arrears.
MPT said in a press release that it had agreed to provide Steward with a $60 million bridging loan to help repay outstanding debt, and that as part of its plan, “Steward is considering a potential sale or resale.” We are proceeding with several strategic transactions, including -Tenancy of certain hospital operations and sale of non-core operations. ”
In a statement shared with the Boston Globe, Steward further elaborated on the debt repayment plan.
“While we pursue inequities and aggressively advocate for fairer reimbursement, Steward continues to strengthen liquidity, restore our balance sheet, and move forward as a leading healthcare provider to our patients.” “We are moving forward with an action plan to put in place the tools needed to support our communities, our physicians, and our employees,” the statement read.
Steward operates 33 hospitals in nine states, including multiple facilities in Texas and Massachusetts. Website.It's inside Japan's largest private for-profit medical system.
As of fall 2023, Steward says: According to the company's website, it has 33,000 employees. It is unclear how many people are employed as stewards throughout the state of Texas.Our downtown Dallas headquarters overlooks Klyde Warren Park. per reportSteward employs more than There are 16,000 nurses, doctors and other health care workers in Massachusetts.
According to its website, Steward operates five hospitals in Texas: Port Arthur, Odessa, Big Springs, Houston, and Texarkana.
The sixth previously operated facility in the state is Southeast Texas Medical Center in Beaumont. We will be closed this week.
“After careful consideration, Southeast Texas Medical Center has announced plans to close all hospital-related services, including the emergency department, at our Beaumont campus beginning February 2, 2024,” Steward said in a statement announcing the closure of the facility. said in a statement released.. “All of the care currently provided at that campus will be available at the Port Arthur campus, which includes world-class stroke and trauma care, neonatal intensive care, orthopedic services, and more. “We treated only 27 total inpatients in the region last year. We have endeavored to provide the necessary notice.”
A spokeswoman for Steward's PR firm said the company's financial concerns were “separate from the Beaumont issue.”
But in Massachusetts, lawmakers are concerned that the company's financial situation could soon lead to sudden closures of several hospitals in the state.
There, as in Texas, Stewards have already closed one facility this year.
Last week, members of the Massachusetts Congressional Delegation sent a joint letter to: Dr. Ralph de la Torre, CEO of Steward Health Care System, details concerns about further future impacts related to the company's ongoing financial issues.
“I am writing to address recent reports indicating that Steward Healthcare System is in serious financial distress,” the letter reads. “This is the announced closure of Steward New England Sinai Hospital, Steward St. Elizabeth Medical Center, Steward Medical Group, and Steward Healthcare System in violation of the False Claims Act. This follows an allegation that the stewards are unable to meet existing demands on rent and loan repayment responsibilities. The sudden closure of Steward Hospital in Massachusetts would significantly limit access to inpatient critical care, inpatient behavioral health, and maternal and child health services in eastern Massachusetts. ”
In late December, the federal prosecutor's office in Massachusetts announced The lawsuit alleges that Steward violated the False Claims Act by hiring a cardiac surgeon and paying him various fees based on his performance. I referred him to my hospital for cardiovascular surgery.
On Wednesday, the Massachusetts Department of Public Health held a meeting to discuss Steward's situation.
According to reports, Steward issued a statement regarding the financial situation in December. In the report, the company cited public benefit programs such as Medicare and Medicaid as reasons why hospitals in Massachusetts are struggling, as well as taxes generated by transactions as for-profit businesses that are not levied on nonprofit hospitals. There is.
In a statement the company reportedly redistributed this week in response to Wednesday's meeting, it said it had incurred $22 million in losses operating the facilities that Stewards announced plans to close and could no longer afford to keep them open.
“We encourage Steward staff to work with state authorities,” the Massachusetts delegation said in a letter to Stewards.. “But residents, workers, regulators and elected officials need to come to the table to discuss Steward's future plans and ensure continued access to quality health care in our communities.”
Steward did not respond to questions from WFAA about the financial situation and how it would affect the hospital's continued operation in Texas.
