Steward Health Secures $150M as Part of Action Plan
DALLAS – Steward Health has announced an action plan that includes a $150 million financial agreement to further stabilize the business by paying vendor obligations and other operation costs.
The influx of cash allows Steward the liquidity needed until it can sell its “highly desired asset physician group Stewardship Health,” according to a news release.
The lenders reportedly have extended their forbearance agreement through April 30, 2024, to give Steward additional time to execute the action plan and find financial stabilization.
Other parts of the plan include working toward employee retention and continuity; selling nonessential assets, including Steward-owned aviation; downsizing back-office operation through consolidation; and retaining Alix Partners, a consulting firm, to advise the hospital group as it proceeds on restructuring with new leadership in the Northeast region, where Steward owns a number of hospitals in Massachusetts.
Steward announced a successful renegotiation of labor agreements with the Massachusetts Nurses Association and Service Employees International Union, securing and maintaining a robust pension plan. Referral fees of up to $40,000 have been offered to current employees to attract other top talent, especially in highly competitive nursing fields, a news release states.
Along with Steward-owned aviation, the release states it will continue to actively seek opportunities to divest in noncore assets while continuing a commitment to patients, staff and communities served by the health care company.
Although Steward’s financial troubles have been most noted in Massachusetts, the Dallas-based company owns 33 hospitals in Arizona, Arkansas, Florida, Louisiana, Massachusetts, Ohio, Pennsylvania and Texas. Locally, Steward owns Trumbull Regional Hospital, Sharon Regional Hospital and Hillside Rehabilitation Hospital.
Medical Properties Trust Inc., a real estate investment trust, has reported since January that Steward owes it more than $50 million in unpaid rent and that it has funded $20 million to help keep Steward afloat.
Published by The Business Journal, Youngstown, Ohio.
