Objection to closing of Trumbull Co. Steward hospitals filed in bankruptcy court
A new filing in the Steward Health bankruptcy case is asking for the court to grant at least 15 days for objectors to submit a bid or extend the closure deadline from September 20 to November 20.
According to the filing, the objectors — the City of Warren, Trumbull County, Warren City Hospital, Inc., and Western Reserve Health Education — all have an interest in protecting the hospitals, including Trumbull Regional Medical Center and Hillside Rehabilitation Hospital.
The group said in the filing that they have reached out to Medical Properties Trust and the Cain Brothers to potentially submit a bid. They also claim that the 21-day timeframe set on June 3 did not give enough notice or time for interested parties to submit a qualified bid.
The filing alleges that Medical Properties Trust (MPT) and the Cain Brothers have hindered potential bidders. They claim the guidance from MPT and the Cain Brothers created a "Catch 22" and negotiations were marked with "weeks of a lack of responsiveness to requests for contact."
The objectors argue that the hospital's property and facilities are in subpar condition due to deferred maintenance. They also said it's unrealistic that the leases would not be reduced because of code violations and poor conditions, citing temporary air conditioning units in patient contact areas.
The group claims these issues would dramatically reduce the hospital's valuation.
According to the court filing, the group says the debtors would not be "prejudiced by the relief or extension," but the health needs of patients would be.