A bankruptcy judge is scheduled to hold a hearing Sept. 10 on Orlando Health's bid to purchase three Florida hospitals owned by Steward Health System, which is trying to shed assets after filing for Chapter 11.
Orlando Health submitted the only “qualified” bid, according to a court document filed this past week. The document, filed by attorneys for Steward Health Care, gave notice of designating Orlando Health as the successful bidder.
A proposed agreement filed Aug. 14 said Orlando Health would pay $439.4 million in cash for Melbourne Regional Medical Center, Rockledge Regional Medical Center and Sebastian River Medical Center, though the amount could be adjusted based on a series of factors.
Orlando Health was designated as what is known in bankruptcy cases as a “stalking horse bidder,” which set an initial bid.
Other potential purchasers faced an Aug. 26 deadline for submitting bids.
With no other qualified bids, Steward said it will not conduct an auction, according to court documents.
"The Debtors, after consultation with the Consultation Parties, have determined that the designation of the Orlando Health Bid as the Successful Bid with respect to the Space Coast Hospitals is in the best interests of the Debtors and their estates," Steward attorneys wrote in last week's filing.
Melbourne Regional and Rockledge Regional are in Brevard County, while Sebastian River Medical Center is in Indian River County.
In addition to those hospitals, Dallas-based Steward owns Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center and Palmetto General Hospital in Miami-Dade County and Florida Medical Center in Broward County.
Steward also owns hospitals in other states, including Massachusetts, where the company announced Thursday that it has definitive agreements to sell three hospitals, NPR Boston affiliate WBUR reports.
Steward also owns hospitals in other states, including Massachusetts, where the company announced Thursday that it has definitive agreements to sell four hospitals, NPR Boston affiliate WBUR reports.
Rhode Island-based Lifespan said it has a purchase agreement to acquire St. Anne's Hospital in Fall River and Morton Hospital in Taunton for $175 million. The price covers hospital operations, land and buildings.
Lawrence General Hospital has signed an agreement to take Holy Family Hospital's two campuses in Methuen and Haverhill for $28 million, including the operations and real estate.
The land and buildings have been a point of contention during the negotiations for Steward hospitals. The real property is owned by outside investors who are sparring with Steward over who will get the bulk of the proceeds from sales.
Meantime, two of the hospitals in suburban Boston were shuttered Saturday, as expected: Carney Hospital and Nashoba Valley Medical Center. The closures occurred despite public pressure on Steward to keep them open. Steward said it did not find qualified bidders for the facilities.
Information from Health News Florida's Rick Mayer was used in this report.
