Pipeline Health assumes master lease of LA hospitals to help it emerge from bankruptcy

Pipeline Health is to assume the master lease of four Los Angeles area hospitals as well as two medical office buildings as part of its emergence from bankruptcy, real estate investment trust Medical Properties Trust said Jan. 13.

The El Segundo, Calif.-based healthcare system, which completed the sale of two of its Chicago-area hospitals as part of its bankruptcy proceedings earlier this month, is focusing most of its efforts on Los Angeles healthcare facilities to help it emerge from bankruptcy, MPT said.

Part of the agreement with MPT involves deferring approximately $5.6 million of 2023 cash rent into 2024, when it will be collected with interest. MPT will also earn eventual rent from the addition of a behavioral health facility within Coast Plaza Hospital, a capital project MPT will initially fund.

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