Steward Health Care, facing bankruptcy, secured a $225 million loan to continue operating its hospitals until an auction planned for later this month. The company did not reveal the lenders but will seek court approval this week.
Steward, which filed for bankruptcy in May, operates hospitals in Massachusetts. The new lenders are likely from a group that provided previous funding before the bankruptcy.
Steward says a “thorough process” secured the loan. Last week, the bankruptcy court allowed Steward to offer incentives to attract lenders, including a $6.75 million commitment fee and expense reimbursements.
Currently, Steward operates as a “debtor in possession,” meaning it maintains control of its businesses during the bankruptcy process. Steward’s initial lender declined to provide more funding beyond the initial $75 million.
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The court-approved timeline requires bids for Massachusetts hospitals by June 24th, with an auction on June 28th and a final sales hearing on July 11th. Massachusetts hospitals include St. Elizabeth’s, Carney, Good Samaritan, Morton, St. Anne’s, Nashoba Valley, and Holy Family. Steward-owned Norwood Hospital, closed since 2020, won’t be part of the auction.
Disclaimer: This article reports on Steward Health Care’s financial situation and upcoming auction. It is not intended to be medical advice. Please consult with your doctor for any healthcare-related questions or concerns.
