Medical Properties Trust tenant Steward files for bankruptcy protection
By Steve Goldstein
Struggling hospital chain Steward Health Care, a tenant of publicly traded Medical Properties Trust, filed for bankruptcy protection on Monday.
Steward, the largest physician-owned system in the U.S., said it's finalizing the terms of debtor-in-possession financing from Medical Properties Trust for initial funding of $75 million, and up to an additional $225 million.
Medical Properties Trust (MPW) fell 8% in early trade.
Steward blamed the bankruptcy on the delay in closing the sale of its Stewardship Health business, as well as decreasing reimbursement rates and skyrocketing labor costs. UnitedHealth's (UNH) Optum has agreed to buy primary-care facilities in nine states, a deal that U.S. Sens. Elizabeth Warren and Ed Markey, both Massachusetts Democrats, have opposed.
The concern over Steward's situation and its difficulty in paying rent has dogged the company, whose stock was down 56% from its July highs but up 50% from its January lows.
The bond-market reaction, reflecting the long-known concerns over Steward's finances, was modest. Medical Properties Trust's debt maturing in 2031 has fallen between 1.5 cents and 2 cents on the dollar over the last two weeks, according to information from the market-data company BondCliQ.
The Wall Street Journal reported that one Steward hospital in Florida became infested with bats, and garbage collectors cut off another in the state over unpaid bills. Steward operates 30 hospitals in eight states.
Medical Properties Trust is due to report first-quarter results on Thursday.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-06-24 0949ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations