Senators Elizabeth Warren and Ed Markey are fixing on a brand new goal within the Steward Health chapter disaster, pushing affiliated personal fairness large Apollo World Administration as the important thing “fulcrum economic stakeholder” in determined efforts to promote the remaining Massachusetts hospitals.
“Apollo’s role in the ongoing Steward bankruptcy has thus far received little scrutiny,” the senators wrote in a letter Apollo CEO Marc Rowan. “But over the last week, your company has moved squarely into the spotlight as the ‘single negotiator’ for the future of the leases.”
As Steward has engaged in chapter proceedings, years of economic mismanagement and the roles of Steward CEO Ralph de la Torre, executives from personal fairness agency Cerberus Capital Administration, and landlords from Medical Properties Belief (MPT) and Macquarie Funding Companions (MIP) have come beneath scrutiny.
Steward is now scrambling to seek out patrons and full gross sales for six Massachusetts hospitals. The corporate introduced in late July they’ll shut Carney Hospital in Dorchester and Nashoba Valley Medical Middle in Ayer by Aug. 31.
Apollo is the important thing monetary backer behind the actual property companies MPT and MIP that purchased the hospitals’ property and now “effectively owns” the properties for six remaining Steward-owned hospitals in Massachusetts, the senators cite from Steward filings. This implies the personal fairness agency will management lease negotiations with potential patrons.
The senators famous that the gross sales of the hospitals stay unsure largely as a result of monetary burden of the expensive leases and requested the Apollo govt to “work in good faith” to facilitate the sale of the remaining hospitals to operators that may maintain them working.
“Specifically, we ask that you act quickly to negotiate with prospective buyers and provide relief from onerous leases to enable these hospitals to remain open and serving health care needs of their communities,” the letter states.
The senators additionally requested data on Apollo’s function in Steward’s chapter and monetary obligations to the corporate by Aug. 11.
“Apollo has had a shadowy role in Steward’s leases for years,” Warren mentioned in a launch. “Now it is time for Apollo to step into the light, and act quickly to negotiate with prospective buyers so that the hospitals can remain open and serve the people of Massachusetts.”
On Thursday, Gov. Maura Healey instructed reporters the gross sales of the remaining hospitals are “moving quickly I think right now in the bankruptcy court” and he or she is “cautiously optimistic.”
De la Torre got here beneath hearth in latest days following studies he attended the Olympics in Paris because the closures of the 2 Massachusetts hospitals have been introduced.
In an announcement, a spokesperson for the CEO famous he “does not have the authority to make decisions regarding sales or closures in the bankruptcy process” and was “regrettably” on a deliberate household trip on the time.
A listening to for the gross sales of Good Samaritan Medical Middle in Brockton, Morton Hospital in Taunton, St. Anne’s Hospital in Fall River, St. Elizabeth’s Hospital in Brighton, and Holy Household Hospital with campuses in Methuen and Haverhill is predicted to be held in chapter court docket Tuesday.
