Steward Keeps June 24 Bid Deadline for Local Hospitals, Extends Deadline for Others

YOUNGSTOWN, Ohio – Steward Health Care System has extended until July 15 the deadline for bids to buy its hospitals in Arizona and Massachusetts, and St. Joseph Medical Center in Texas.

But the bankrupt company has not extended the June 24 deadline for bids on its three local hospitals: Trumbull Regional Medical Center in Warren, Hillside Rehabilitation Center in Howland and Sharon Regional Medical Center in Sharon, Pa.

What this means for future operations at the local hospitals is unclear. Has Steward succeeded in securing bids for the three hospitals?

The emergency motion filed late Tuesday with U.S. Bankruptcy Court in Houston cites the asset bidding procedure order Judge Christopher Lopez approved June 3 that grants the bankrupt company, in “its reasonable business judgement,” the right to extend deadlines as necessary.

Steward is selling its 31 hospitals in eight states. The company has divided the hospitals into two groups, dubbed the first and second round hospitals.

The bid deadline extension document does not provide information about who may (or may not) be bidding for the hospitals or why more time is needed.

On May 27, the investment banking company hired to market Steward Health Care’s hospitals in Ohio and Pennsylvania said in court papers that it has received indications of interest “from a number of buyers for some or all of the debtors’ assets.”

At that time, the company did not specify what that “number” is or identify the potential bidders.

Unless Steward files court papers changing the schedule, bids received by close of business June 24 would be subject to court auctions June 27 and final sale hearings July 2.

Copyright 2024 The Business Journal, Youngstown, Ohio.