Steward Health Care says it is selling the 30+ hospitals it operates nationwide

TECH

Steward Health Care says it is selling the 30+ hospitals it operates nationwide

2024-05-09 03:08 Last Updated At：03:10

Steward Health Care said it plans to sell off all its hospitals after announcing this week that it filed for bankruptcy protection.

The Dallas-based company, which operates more than 30 hospitals nationwide, said it does not expect any interruptions in its hospitals’ day-to-day operations, which the company said will continue in the ordinary course throughout the Chapter 11 process.

In court filings, the company said that beginning in late January, Steward initiated what it described as a “phased marketing process” for the sale of its hospital facilities.

“Presently, the company is marketing all of its hospitals,” the company said a filing Tuesday.

Steward filed for bankruptcy protection early Monday. In a news release, company officials said Steward took the step to let it continue to provide needed care to patients.

“Steward’s hospitals, medical centers and physician’s offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change," the company said in a written statement.

Steward’s eight hospitals in Massachusetts include St. Elizabeth’s Hospital and Carney Hospital, both in Boston. It filed for protection in the U.S. Bankruptcy Court for the Southern District of Texas.

Massachusetts Attorney General Andrea Campbell said Wednesday that she is pushing for the creation of a Patient Care Ombudsman to advocate for patients and employees throughout the bankruptcy process. She also said she has the authority to review any proposed sale under her office's antitrust powers.

“The office has authority to review any proposed sale, and we would do so in order to best protect access to a competitive and affordable healthcare marketplace,” she said in a written statement. “If we find violations of the law, we will address them.”

Steward’s troubles in Massachusetts have drawn the ire of political figures including U.S. Sens. Elizabeth Warren and Edward Markey, who have said the company’s previous private equity owners “sold (Steward) for parts” and “walked away with hundreds of millions of dollars.”

Massachusetts Gov. Maura Healey said Monday that the state had been preparing for a possible bankruptcy filing. Despite the filing, she said, Steward hospitals will remain open and patients should keep their appointments.

“This situation stems from and is rooted in greed, mismanagement and lack of transparency on the part of Steward leadership in Dallas, Texas,” Healey said Monday. “It’s a situation that should never have happened and we’ll be working together to take steps to make sure this never happens again.”

Steward said it is finalizing the terms of “debtor-in-possession financing” from its landlord Medical Properties Trust for initial funding of $75 million and “up to an additional $225 million upon the satisfaction of certain conditions.”

“Steward Health Care has done everything in its power to operate successfully in a highly challenging health care environment,” Dr. Ralph de la Torre, CEO of Steward said in a news release.

He pointed in part to what he described as insufficient reimbursement by government payers as a result of decreasing rates at a time of skyrocketing costs.

Torre said that by seeking bankruptcy protections, Steward will be better positioned to “responsibly transition ownership of its Massachusetts-based hospitals.”

In March, the company announced it had struck a deal to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, as it works to stabilize its finances.

Power expected to be restored to most affected by deadly Houston storm

2024-05-20 03:25 Last Updated At：03:30

HOUSTON (AP) — Houston area residents affected by deadly storms last week that left at least seven dead were finally getting some good news as officials said they expected power to be restored by Sunday evening to a majority of the hundreds of thousands still in the dark and without air conditioning amid hot and humid weather.

The widespread destruction of Thursday’s storms brought much of Houston to a standstill. Thunderstorms and hurricane-force winds tore through the city — reducing businesses and other structures to piles of debris, uprooting trees and shattering glass from downtown skyscrapers. A tornado also touched down near the northwest Houston suburb of Cypress.

More than 352,000 homes and businesses in Texas remained without electricity Sunday morning, with most of those in the Houston area.

“It’s been a madhouse out here,” Cypress resident Hallie O’Bannon said. “You know we don’t have any power. No hot water. It’s been really crazy.”

At one of five cooling centers for people still without power in their homes in Houston, residents took shelter from the heat at a community center in the Cloverleaf neighborhood.

Carolina Sierra and her 6-year-old son, Derek, enjoyed the air conditioning for a couple of hours Sunday. She said they have been without electricity since the storm hit Thursday, and their home has been stifling.

Derek passed the time coloring a picture of a dragon while his mother charged her cellphone and a portable lamp they planned to use Sunday night if the power was still not restored. Sierra, 38, said she gives her son multiple baths to try to keep him cool but he tosses and turns at night and struggles to sleep.

“We are desperate. We hardly sleep at night because of the heat,” Sierra said.

Harris County Commissioner Adrian Garcia stood outside the center Sunday, helping load water and ice onto the vehicles while offering words of encouragement to residents still waiting for power to be restored.

“We are seeing a bit of the recovery come through. But we can’t see enough of it fast enough,” Garcia said.

Help was also on the way in the form of disaster assistance from the Federal Emergency Management Agency and loans from the Small Business Administration, said Harris County Judge Lina Hidalgo, the top elected official in the county where Houston is located. The federal assistance, which can help pay for temporary housing and repairs, will help residents affected by last week’s storms as well as by flooding from heavy rainfall in late April and early May in parts of Houston, Harris County and several counties north of Houston.

CenterPoint Energy said it anticipated that about 80% of affected customers in the Houston area would have service restored by Sunday evening. Hidalgo said 90% of customers could be restored by Wednesday.

Officials had worried that high-voltage transmission towers that were torn apart by the high winds would substantially prolong efforts to restore power.

“They were able to go around and reroute around those downed towers because of the new technologies. It’s great news,” Hidalgo said.

But Hidalgo warned residents that if the equipment in their home is damaged, they will not get power until residents take care of those repairs.

More than 4,600 customers remained without power Sunday morning in Louisiana, which had also been hit by strong winds and a suspected tornado.

CenterPoint Energy said 2,000 employees and more than 5,000 contractors were working in the Houston area to restore power.

“We understand the higher temperatures we are experiencing across Houston and surrounding communities make getting the lights and air conditioning back on even more important,” Lynnae Wilson, CenterPoint’s senior vice president of electric business, said in a statement.

Residents broke into cheers as lights and air conditioning kicked on at the eight-story senior housing Houston Heights Tower on Sunday morning. The nearly 200 residents had been living on emergency power since Thursday evening, with generators providing enough electricity to run just one of the building’s elevators and a handful of fans in the community room, leaving apartments in darkness.

Volunteers and city workers had been ensuring residents received a steady supply of water, food and essentials like toilet paper.

“It just goes to show you how people come together,” 72-year-old resident Joseph Torregrossa said, choking back tears.

The National Weather Service said in a post on the social media site X that residents should expect “sunny, hot and increasingly humid days” in the Houston area. Highs of about 90 degrees (32 Celsius) were expected this week, with heat indexes likely approaching 102 degrees (39 Celsius) by midweek.

Houston area school districts canceled classes for more than 400,000 students Friday. The Houston Independent School District, the state’s largest, said power had been restored to nearly 200 campuses and those schools would be open Monday. But another 77 campuses remained without power.

Associated Press reporter Mark Vancleave contributed to this report.

Follow Juan A. Lozano: https://twitter.com/juanlozano70