(Bloomberg) -- Bankrupt health care system Steward Health Care has found buyers for six of its Massachusetts hospitals after state authorities provided a $30 million lifeline.
Privately owned Steward said Thursday that not-for-profit health system Lifespan has agreed to purchase Morton Hospital and Saint Anne’s Hospital. Steward said it also has agreements to sell Holy Family Hospitals in Methuen and Haverhill to Lawrence General Hospital.
The sales are subject to customary closing conditions, including regulatory and bankruptcy court approval, Steward said. The company said it’s also finalizing a pact with Boston Medical Center to sell the operations of its Good Samaritan Medical Center and St. Elizabeth’s Medical Center.
The transactions were announced weeks after Steward secured a $30 million lifeline from Massachusetts to support the six hospitals. A Texas bankruptcy judge approved the funding after Steward received permission to close two other hospitals in the state.
Massachusetts officials agreed to make advance payments through various state programs to support the six Steward hospitals as they are transitioned to new owners, according to bankruptcy court documents. Steward has also sought funding from Pennsylvania to support a hospital located in that state.
Steward filed Chapter 11 in May and has been working to sell its hospitals to new owners. The company operates about 30 hospitals in Florida, Massachusetts, Texas and other states.
Earlier this month, Steward sued its landlord Medical Properties Trust Inc. of interfering with a court-approved plan to sell its hospitals. MPT has denied the allegation.
The bankruptcy case is Steward Health Care System LLC, 24-90213, US Bankruptcy Court for the Southern District Court of Texas (Houston.)
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