Orlando Health, a well-known healthcare provider in Florida, has recently made a significant offer to purchase bankrupt Steward Health Care’s properties in the „Space Coast“ region for $439 million. This deal, outlined in a court document filed on Wednesday, includes the acquisition of Rockledge Regional Medical Center, Melbourne Regional Medical Center, and Sebastian River Medical Center, along with some medical clinics in Brevard and Indian River Counties.
As part of the agreement, Steward designated Orlando Health as the „stalking horse bidder,“ giving them the opportunity to negotiate the purchase agreement first and establish a minimum price to protect the debtor from low bids. The bid is open to higher offers until August 26, with a potential auction on August 29 if necessary. The sale hearing is set for September 10, pending bankruptcy court approval.
Steward President Mark Rich expressed optimism about the offer, stating, „We look forward to reviewing any additional bids that are received…and are encouraged by Orlando Health’s vote of confidence in our northern Florida operations.“ The sales price may be adjusted based on certain factors outlined in the purchase agreement, with the closing expected by the end of the year.
Steward Health Care, a Dallas-based for-profit system, has been facing financial challenges and filed for Chapter 11 bankruptcy in May. The company has been working to sell off assets in several states, including its Florida hospitals. The acquisition by Orlando Health would mark a significant expansion for the private, nonprofit healthcare chain, which already operates 17 hospitals in the state.
In addition to the Florida properties, Steward owns hospitals in Massachusetts that are also part of the bankruptcy proceedings. Massachusetts Governor Maura Healey recently announced a plan to save five hospitals in the state operated by Steward, including taking control of St. Elizabeth’s Medical Center in Boston through eminent domain to facilitate the transition to new ownership. The remaining facilities are expected to be sold to local nonprofit healthcare providers.
While the deal with Orlando Health represents a positive step for Steward Health Care, the company has faced criticism for its financial management and decisions regarding hospital closures. Two Steward facilities in Massachusetts are set to close by the end of the month, despite protests from healthcare workers and community members concerned about the impact on patient care.
The sale of Stewardship physicians network to Rural Healthcare Group for $245 million has also drawn criticism, with state officials raising concerns about the impact of private equity ownership on healthcare providers. Steward Health Care’s financial situation, with debts totaling over $9 billion, highlights the challenges facing the company and the healthcare industry as a whole.
Overall, the acquisition of Steward Health Care’s „Space Coast“ properties by Orlando Health represents a significant development in the healthcare sector in Florida. The deal will have implications for patients, healthcare workers, and the broader community, underscoring the complex nature of the healthcare industry and the importance of sound financial management in ensuring quality care for all.
