Medical Properties Trust, one of the world's largest hospital real estate owners and landlord to Dallas-based Steward Health Care, approved $75 million in debtor-in-possession financing for the health system after it filed for Chapter 11 bankruptcy.
The landlord expects Steward to use the funding to ensure patient care continues while it "accelerates the re-tenanting of hospitals to new operators," according to a May 6 Medical Properties Trust news release.
"Steward Health Care has done everything in its power to operate successfully in a highly challenging healthcare environment," Ralph de la Torre, MD, CEO of Steward, said in a May 6 health system news release. "Filing for Chapter 11 restructuring is in the best interests of our patients, physicians, employees and communities at this time."
The decision came after the for-profit, 30-hospital health system had been battling financial troubles for months and was $50 million behind on year-end rent to Medical Properties Trust.
Steward said in its release that it could receive up to another $225 million from Medical Properties Trust should it meet specific conditions. However, Medical Properties Trust has "not committed to providing additional funding" beyond the $75 million, according to its own release.
Terms for any debtor-in-possession financing are subject to bankruptcy court approval, the Medical Properties release said.
Becker's has reached out to Steward for comment and will update this story should more information become available.