WSJ: Steward Health contacts restructuring advisers amid financial struggles
An exclusive report from the Wall Street Journal has detailed the next steps for Steward Health Care System, the largest doctor-owned network in the U.S.
The Wall Street Journal reports that Steward Health is looking at restructuring options, having engaged with advisers as they deal with financial problems. According to the article, the company is working with the Weil Gotshal & Manges law firm and consulting firm AlixPartners for help.
A 21 News report from January 9 looked into the issues facing Steward Health.
A press release from Medical Properties Trust Inc. (MPT), the company which Steward rents from, MPT announced plans to "accelerate its efforts" to recover uncollected rent and outstanding loan debts from Steward.
Here in the Mahoning and Shenango Valleys, Steward Health owns Trumbull Regional Medical Center, Hillside Rehabilitation Center in Warren and Sharon Regional Medical Center.
The debt problem stems from inflation. Alan Condon, Editor-in-Chief at Becker's Healthcare, told 21 News at the time that the rising costs for labor, drugs and supplies are all contributing factors. There's also been a decline in patients since the pandemic.
Steward is the largest, private tax-paying hospital operator in the country. They own more than 30 hospitals in eight states.
In total, the company owes nearly $50 million in rent.