Hope hospital operator files for Chapter 11 protection
DALLAS, TX – The operator of Wadley Regional Medical Center in Hope, Steward Health Care, has announced that it has commenced an in-court restructuring process through the filing of voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The company is finalizing the terms of debtor-in-possession financing from Medical Properties Trust for initial funding of $75 million and up to an additional $225 million upon the satisfaction of certain conditions acceptable to Medical Properties Trust.
In court filings, Steward Health Care said it plans to sell off all its hospitals. The Dallas-based company operates 31 hospitals nationwide, including in Hope and Texarkana. In the court filings, the company said that beginning in late January, Steward initiated what it described as a “phased marketing process” for the sale of its hospital facilities. “Presently, the company is marketing all of its hospitals,” the company said a filing Tuesday.
Steward said it took this voluntary restructuring step this week as a necessary measure to allow the company to continue to provide necessary care to its patients in their communities without disruption. Steward said it does not expect any interruptions in its day-to-day operations, which will continue in the ordinary course throughout the Chapter 11 process. Steward’s hospitals, medical centers and physician’s offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change.
To address the Steward/Wadley situation, local community leaders have recently formed a local non-profit corporation named Southwest Arkansas Healthcare Authority. The stated mission of this non-profit corporation is “to continue to provide quality healthcare services in Southwest Arkansas along with working toward a long-term solution for healthcare in our local region.”
In a statement, the Southwest Arkansas Healthcare Authority said it “understands the vital importance of healthcare to our education sector, business and industry sector and to our local citizens. We are closely monitoring the changing local healthcare landscape. Federal and state healthcare authorities are also closely monitoring this process. Wadley at Hope remains open and continues to offer all existing healthcare services. Southwest Arkansas Healthcare Authority is grateful for the many hardworking and dedicated healthcare professionals serving Wadley at Hope.”
Members of the Board of Directors of Southwest Arkansas Healthcare include Anna Lee Powell, Clay Hobbs, Ed Darling, Ben Hale, JR Wilson, and Dennis Ramsey.