According to CNN, Steward Health Care has put all of its 31 hospitals across the U.S. up for sale. 

On Monday, the Dallas-based health care network announced that it has filed for Chapter 11 bankruptcy.

According to CNN, Steward said it had over $9 billion in total liabilities, including $1.2 billion in loans, $6.6 billion in long-term rent obligations, nearly $1 billion in unpaid bills from medical vendors and suppliers, and $290 million in unpaid employee wages and benefits.

Steward is the largest physician led hospital operator in the U.S., and operates Trumbull Memorial Hospital in Warren, Hillside Rehabilitation in Howland, and Sharon Regional Hospital in Mercer County. 

Earlier this year, Medical Properties Trust, which owns the real estate where Steward’s hospitals are located, announced that Steward was $50 million behind on rent payments after making only partial payments for its U.S. facilities.

Since then, Steward has told Medical Properties that it hopes to increase rent payments with the help of $150 million in loans recently announced.

Steward also blames the bankruptcy on what it says is insufficient government reimbursements coupled with “skyrocketing labor costs, increased material and operational costs due to inflation, and the continued impacts of the COVID-19 pandemic.”

According to CNN, Steward is putting all of its hospitals up for sale, and intends to hold auctions on June 28 for its hospitals outside of Florida, and July 30 for its nine hospitals in Florida. 

During a bankruptcy hearing Tuesday, U.S. Bankruptcy Judge Chris Lopez allowed Steward to borrow $75 million from Medical Properties Trust, and Steward hopes to borrow an additional $225 million from Medical Properties Trust later in its bankruptcy. 

The three Steward Health Care hospitals in the Valley are worth $116 million, according to Medical Properties Trust.

The health care system hopes to finalize real estate transactions by the end of the summer.