Steward Health Care, a US-based integrated healthcare system, has entered into a definitive agreement to divest Wadley Regional Medical Center in Texarkana, Texas, to the international Catholic health system CHRISTUS Health.
The bid from CHRISTUS Health has been designated as the stalking horse bid, setting a baseline for any other offers, the health system noted.
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This sale is part of a bankruptcy proceeding and is contingent on higher or better qualified bids received by 9 September.
If other bids are submitted, a bankruptcy court-approved auction may be held.
Subject to necessary closing conditions, including Bankruptcy Court and regulatory approvals, the deal is anticipated to conclude in the fourth quarter of 2024 contingent on CHRISTUS Health being the highest bidder.
Steward Health Care is represented by several firms in this transaction, including Weil, Gotshal & Manges as restructuring counsel, McDermott Will & Emery as regulatory counsel, and Cain Brothers and Leerink Partners as healthcare investment bankers.
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By GlobalDataAdditionally, AlixPartners is serving as financial advisor for the health system.
Steward Health is a physician-led, minority-owned integrated network and operates over 30 hospitals across Ohio, Arizona, Pennsylvania, Florida, Arkansas, Texas, Louisiana, and Massachusetts.
Steward Health Care chief restructuring officer John Castellano said: “As Steward continues to move through the Chapter 11 process, we are working closely with various parties, officials and stakeholders in the Court supervised process to obtain the best results we can for our patients, employees, and the communities we serve.
“We are pleased to have found a new operator for Wadley in CHRISTUS Health, who we believe will continue our mission to provide high-quality and compassionate care to the people of Texarkana.”
This sale follows Steward Health Care’s recent agreements to divest certain hospitals in Massachusetts, including Morton Hospital and Saint Anne’s Hospital.
The Massachusetts hospitals are to be acquired by the not-for-profit health system Lifespan.
