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Astria Health cancels sale of hospitals as COVID-19 affects markets

Yakima, Wash.-based Astria Health, which filed for Chapter 11 bankruptcy in 2019, has taken its hospitals off the market, according to KIMA

Attorneys for Astria filed a notice in bankruptcy court canceling all bidding deadlines for the health system's assets. Astria, which closed one hospital in January and still operates two others, is working with Lapis Advisers on a joint reorganization plan, according to the Yakima Herald

"Based on the impact of the COVID-19 pandemic on the capital markets … the debtors, in consultation with representatives of Lapis Advisers … have concluded that a sale process is not a viable exit strategy for the debtors at this time," Astria's attorneys wrote in the notice filed April 24. 

The joint reorganization plan is expected to be ready by June 1. The health system is aiming to exit bankruptcy by July, a spokesperson told KIMA

More articles on healthcare industry transactions:
CHS to divest 3 hospitals in Texas, Florida
Verity continues hospital divestiture spree with $40M deal
Billionaire Dr. Patrick Soon-Shiong buys California hospital for $135M

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