“This is in the best interest of the estate, it is in the best interest of the creditors,” Mr. Lopez said during the hearing.
Steward, which sought Chapter 11 protection May 6 and has been working to offload the remainder of its 31 hospitals, accepted Pafford Health Systems’ bid for the hospital on July 21.
Pafford also agreed to fund payroll accrued as of Sept. 1 for the 79-bed hospital under the sale agreement, providing Steward with additional liquidity following the transaction, a Steward representative said during the hearing.
“This proposed transaction aligns with the debtors’ goal of keeping its hospitals open, to preserve jobs and the vital healthcare services for the community,” Steward’s representative said.
News of the sale comes after Mr. Lopez gave Steward approval to transition many of the for-profit health system’s remaining hospitals to its landlord, Medical Properties Trust, on Sept. 11.
Fifteen of Steward’s hospitals across Arizona, Florida, Louisiana, Ohio and Texas have secured interim managers, with a final sale hearing set for Sept. 17 to make the management permanent.
Becker’s has reached out to Pafford Health Systems and will update this story should more information become available.
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