Steward Heath Care announced plans Wednesday to sell its Brevard County hospitals to Orlando Health. The deal must be completed by the end of the month and is subject to U.S. Bankruptcy Court approval.
With financial problems nationwide and local debts, Steward is under public scrutiny for its financial affairs and filed for bankruptcy this year, putting the future of Rockledge Regional Medical Center and Melbourne Regional Medical Center in doubt. The deal with Orlando Health also includes Sebastian River Medical Center in Indian River County.
Steward has been in the process of selling off its assets since filing for bankruptcy in May of this year.
No sales price announced
Orlando Health’s bid to buy Steward’s Central Florida hospitals is a so-called “stalking horse bid,” which sets a minimum price in case a bankrupt company auctions off its assets, which could happen by month’s end.
No sales price was mentioned in a press release announcing the takeover offer. As part of the insolvency auction process, exact figures are not being made public.
The news comes days after Steward announced the sale of its physician network for $256 million, and months after the company sold other key assets, such as its hospital buildings, only to lease them back as part of its bankruptcy strategy.
Orlando Health operates 3,487 hospital beds in 17 hospitals, as well as 10 freestanding emergency departments and nine home health programs.
Steward Health Care operates nine hospitals in the state of Florida, including Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital in Miami-Dade County and Florida Medical Center in Broward County.
Although Steward is in financial trouble nationally, state records show Steward’s hospitals in Florida are profitable. Still, the company has run into trouble paying off local debts to contractors and for pest control services at its Brevard County locations, raising questions about the provider’s future on the Space Coast.
Orlando Health’s announcement this week that it plans to acquire Steward’s Brevard assets suggests that this year’s bankruptcy filing will result in a change in ownership of the hospitals as early as year-end.
This is a developing story. Check back later for updates.
