The company which operates thirty-three hospitals in eight states, including three in the Valley, has announced a financing deal to stabilize the company.

A memo from Steward Health Care Executive President Michael Callum sent to employees in Massachusetts on Friday states that “Steward has agreed upon the principal terms for a significant financial transaction to help stabilize our company.”

The memo says that the funding will help stabilize operations, including the resumption of virtually all elective cases, and allows Steward to continue operations at all its Massachusetts hospitals.

“To be clear, we have no current plan to close any of our hospitals in Massachusetts,” Callum states.

Callum stated that Steward is considering transferring one or more hospitals to other operators. The memo does not disclose which hospitals are being considered for transfer.

Callum says Steward has already received bids in a merger and acquisition process aimed at bringing in an equity partner that would provide the capital needed for a national physician group.

“We are confident that both transactions will provide us with the necessary funds to get us through this challenging time,” said Callum.

The memo comes at a time when Steward Health is facing mounting financial struggles nationally, with Medical Properties Trust demanding payment of $50 million in unpaid rent at several of the company's locations around the country.

The Wall Street Journal has reported that the company lost more than $800 million between 2017 and 2020.

Steward operates Trumbull Regional, Sharon Regional, and Hillside Memorial hospitals here in the Valley.

Two lawsuits pending in Trumbull County allege that Steward Health has failed to pay for nearly $130,000 worth of goods and services at Trumbull Regional Hospital.

In a statement last month responding to an inquiry about the Steward’s local hospitals, a company spokesperson said:

“Steward Health Care is one of many health systems challenged by the once acute and long-tail impacts of the COVID-19 pandemic. Whether record-breaking losses, significant downsizing, or facility closures, the past few years have devastated many community hospitals.”

The spokesperson also stated that Steward is “advancing an action plan to strengthen its liquidity, restore its balance sheet, and put the tools necessary in place to continue forward as a key provider of healthcare services to our patients, communities, physicians, and employees."

Michael Callum's letter appears below: