Healey Tells Steward Health Care "You're on your own". (home, land)

[BugsyPal]

Originally Posted by robr2

MPT isn't going to go into bankruptcy. They own close to 450 facilities across the globe and recently sold an undeclared interest in Steward properties to an asset manager for $105 million citing the favorable conditions for letting other investors in.

Also note that of the $1.25 billion Steward received, $1 billion went to Cerebus when they divested Steward.

IMHO, MPT should consider the optics of the situation. They could forgive part of the monies owed and consider selling the properties to whoever takes over the facilities should that happen. Holding on to empty medical facilities doesn't generate any income to them.

Won't ever happen, not when prime real estate is involved.

When St. Vincent's hospital in NYC was in it's death throes (final bankruptcy and closing down) the Rudin real estate family who had lent the place money circled their wagons. Any and every attempt or even suggestion of saving St. Vincent's was rebuffed. The Rudin family wanted to get their mitts on prime Manhattan real estate, and that's exactly what happened.

Equity guys usually don't give up much or anything. If larger bit of the pie is decent enough they may dole out a small portion (Rudin family gave a plot of land from St. Vincent's hospital campus for a new park in memory of those who died from HIV/AIDS), but that's usually extent of things.

[BugsyPal]

Originally Posted by robr2

There was a story in the Globe on Thursday that a medical device company had repossessed their products from St. E's. One patient died in an emergency situation due to the lack of the device.

That is one sad and story. That in supposed greatest country on earth and major superpower a new mother should die a needless death.

https://www.bostonglobe.com/2024/01/...e_Related_Link

[OutdoorLover]

Originally Posted by BugsyPal

Again, this is not Stewart's first time at the rodeo.

https://prospect.org/health/2024-01-...teward-health/

"the Justice Department sued Steward for violating the Stark Law against physician kickbacks" - Eeps, it's definitely NOT a good thing to have doctors paid by the volume of referrals they make for diagnostic tests or surgical procedures - there is a clear moral hazard there that this payment model will color their judgement and they will order unnecessary testing and surgery.

[Iced_Coffee]

Originally Posted by OutdoorLover

"the Justice Department sued Steward for violating the Stark Law against physician kickbacks" - Eeps, it's definitely NOT a good thing to have doctors paid by the volume of referrals they make for diagnostic tests or surgical procedures - there is a clear moral hazard there that this payment model will color their judgement and they will order unnecessary testing and surgery.

Not to mention the unnecessary spend which ultimately results in higher costs for everyone (via increased insurance premiums).

[robr2]

Originally Posted by BugsyPal

Won't ever happen, not when prime real estate is involved.

When St. Vincent's hospital in NYC was in it's death throes (final bankruptcy and closing down) the Rudin real estate family who had lent the place money circled their wagons. Any and every attempt or even suggestion of saving St. Vincent's was rebuffed. The Rudin family wanted to get their mitts on prime Manhattan real estate, and that's exactly what happened.

Equity guys usually don't give up much or anything. If larger bit of the pie is decent enough they may dole out a small portion (Rudin family gave a plot of land from St. Vincent's hospital campus for a new park in memory of those who died from HIV/AIDS), but that's usually extent of things.

I really wouldn’t compare the Steward locations in MA to be prime real estate vis a vis NYC.

[BugsyPal]

Originally Posted by robr2

I really wouldn’t compare the Steward locations in MA to be prime real estate vis a vis NYC.

It's still land with value. We aren't talking about swamp land deep in deep south or something.

Current owners didn't offer to buy all that healthcare real estate out of kindness of their hearts. These are equity guys and aren't going to give up much if anything unless they make their money.

Comparison with St. Vincent's stands; across USA you have hospitals or other healthcare where land and or improvements are either highly valued or worth in excess of system itself.

As noted in previous posts PE or VE all over country are cozying up to healthcare, nursing/rehab homes and assisted living whispering sweet nothings into their ears. Result are these deals where places sell off their property only to lease it back.

[BugsyPal]

*Update*

https://www.bostonglobe.com/2024/02/...lth-care-deal/

[robr2]

Originally Posted by BugsyPal

*Update*

https://www.bostonglobe.com/2024/02/...lth-care-deal/

Sounds like they have financing for the physician group. Hmmm, Atrius Health stepping in?

[GeoffD]

Originally Posted by BugsyPal

*Update*

https://www.bostonglobe.com/2024/02/...lth-care-deal/

Paywall

[BugsyPal]

Originally Posted by GeoffD

Paywall

Not for me! Came up as part of my Google news feed, clicked link and read article online.

However many other local media are covering this story.

https://www.wbur.org/news/2024/02/02...idge-financing

https://whdh.com/news/steward-health...rations-in-ma/

Meanwhile Steward's CEO Ralph de la Torre isn't exactly hurting.

https://www.bostonglobe.com/2024/02/...h-de-la-torre/