Steward Health Care System Files for Bankruptcy in South Florida

Hospital Transition During Steward Health Bankruptcy

News Summary

Steward Health Care System has filed for Chapter 11 bankruptcy, impacting five hospitals in South Florida including Palmetto General Hospital and Coral Gables Hospital. The operational transfer to Medical Properties Trust will be managed by Healthcare Systems of America – Florida LLC. Despite financial difficulties and ongoing disputes regarding unpaid rent, employees are expected to retain their positions, with day-to-day operations continuing smoothly. A plan to secure permanent operators for the hospitals is set for October 2025, focusing on uninterrupted patient care during this transition.

Florida – Steward Health Care System has filed for Chapter 11 bankruptcy, affecting five hospitals in South Florida. These facilities include Palmetto General Hospital in Hialeah, Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center in North Miami-Dade, and Florida Medical Center in Lauderdale Lakes. The bankruptcy filing indicates significant operational changes for these hospitals, as Steward Health transfers their operations to Medical Properties Trust, the landlord of the real estate.

As part of this transition, Healthcare Systems of America – Florida LLC has been appointed as the interim manager for the hospitals. This arrangement is designed to maintain operations during Steward’s bankruptcy proceedings. A U.S. Bankruptcy Judge, Christopher Lopez, has approved the sale of Steward’s hospitals in Florida, with a final hearing scheduled for September 17, 2025. The transfer agreement will also halt claims against Steward concerning unpaid rent and other related issues.

Steward Health originally sold all its South Florida properties to Medical Properties Trust in 2021, continuing to operate the facilities under a rental agreement. However, financial difficulties have led to warnings of potential hospital shutdowns if a new agreement was not reached. All 31 of Steward’s U.S. hospitals were placed up for sale as part of a broader debt reduction strategy following the bankruptcy filing.

Despite these challenges, an attorney representing Steward has indicated that employees will remain in their positions and that day-to-day operations at the hospitals will continue without disruption for both patients and staff. The new management is also committed to honoring pre-existing paid time off for employees. Moving forward, the goal is to identify permanent operators for the hospitals by October 2025.

The financial struggles experienced by Steward Health have been exacerbated by disputes with Medical Properties Trust concerning unpaid rent, further complicating the sale process for the hospitals. As the situation continues to unfold, the focus remains on ensuring uninterrupted care for South Florida residents while navigating the complexities of bankruptcy and hospital management transitions.

In summary, Steward Health Care System’s bankruptcy filing marks a significant shift for five South Florida hospitals, with operations transitioning to Medical Properties Trust and interim management stepping in. As the healthcare landscape in the region adapts to these changes, the priority is to maintain operational continuity and patient care.