Steward Health Care, operating eight hospitals in Massachusetts and over 20 more across the U.S., has secured a $225 million loan to stay operational. This loan, pending approval by a bankruptcy judge, comes three days before Steward was set to run out of funds.  

Steward filed for Chapter 11 bankruptcy on May 6, with Medical Properties Trust (MPT), the landlord for most of its hospitals, initially providing a $75 million loan. However, MPT declined further funding for this deal, with other pre-bankruptcy bridge financing lenders stepping in. MPT, the largest hospital REIT, reported a $736 million net loss in Q1 due to Steward’s financial struggles.  

Steward has agreed to sell all its hospitals in two separate auctions by the end of June, affecting its operations in multiple states. Meanwhile, another MPT tenant, Prospect Medical Holdings, missed rent payments in April and May, adding to MPT’s challenges.