Tenet entered into an agreement to sell five Florida hospitals to Steward last June, and the $1.1 billion deal closed less than two months later. Since the transaction closed, Tenet and Steward have been involved in litigation, with both Dallas-based organizations arguing they’re owed money.
Tenet claims Steward owes nearly $18.2 million and is insolvent, while Steward alleges Tenet owes more than $16.3 million and is obligated to continue providing the data and IT services to the hospitals now owned by Steward, according to Law360.
Vice Chancellor Sam Glasscock III ruled Aug. 1 that Steward and the five Florida hospitals must pay Tenet $2.8 million a month pending a final ruling in the case. The amount is based on the judge’s assessment of the likelihood Tenet will prevail in the case, according to Law360.
Mr. Glasscock wrote in his opinion that he finds it “readily conceivable” that Tenet will ultimately prevail on the issue of whether it has a right to terminate the services for nonpayment.
The Florida hospitals included in the sale were Coral Gables Hospital, Florida Medical Center in Lauderdale Lakes, Hialeah Hospital, North Shore Medical Center in Miami and Palmetto General Hospital in Hialeah.
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