Mesa’s easternmost hospital and Tempe’s only medical center, alongside three other East Valley hospitals, are slated for auction next month following their parent company’s Chapter 11 bankruptcy filing in Texas on May 6.
Tempe St. Luke’s Hospital, a fixture in the city for 80 years, and Mountain Vista Medical Center, established in 2007 with a broad range of services, are part of the 31 hospitals across eight states now listed for sale after parent company Steward Health Care System, LLC filed for bankruptcy in Houston.
This move comes after Steward announced on Tuesday that it would put all its U.S. hospitals up for sale, affecting 2.2 million patients across eight states, marking one of the largest hospital bankruptcies in decades. Other Arizona properties for auction include Florence Hospital and St. Luke’s Behavioral Health Center in Phoenix.
Steward assured that all properties would remain operational during the bankruptcy process and sales. The auctions for the Arizona hospitals, along with others, are scheduled for June 28. Steward’s chief executive officer, Dr. Ralph de la Torre, stated that filing for Chapter 11 restructuring was in the best interests of patients, employees, and communities.
Despite Steward’s efforts, including attempts to manage finances and secure emergency loans, the company struggled, accumulating $9 billion in total liabilities. The bankruptcy filing aims to significantly reduce these debts through hospital sales. Steward emphasized its commitment to keep all communities served by its hospitals.
Tempe St. Luke’s, with its long history and range of services, holds significant importance in the community. Celebrating its 80th anniversary recently, the hospital has evolved from a small clinic into a full-service, acute-care facility.
Despite the challenges, Tempe St. Luke’s has earned recognition for its exceptional services, including the Bariatric Centers of Excellence and the Primary Stroke Center Certification, reflecting its commitment to quality care. The hospital’s comprehensive programs and accolades underscore its vital role in the community.
However, industry experts have criticized Steward’s financial decisions, such as selling real estate and incurring long-term rent, leading to the company’s bankruptcy filing. Amid these challenges, Steward remains focused on maintaining quality care and serving its communities.
As Steward navigates bankruptcy proceedings, the fate of these hospitals remains uncertain. Nonetheless, Steward reaffirms its dedication to its patients, employees, and communities during this challenging period.
