Orlando Health is poised to expand its footprint in East Central Florida through a substantial acquisition deal. The non-profit health system has placed a $439 million stalking horse bid to acquire a collection of facilities from the bankrupt Steward Health Care. This bid encompasses Rockledge Regional Medical Center, Melbourne Regional Medical Center, and Sebastian River Medical Center, alongside the Steward Medical Group Practices in the region, as reported by WFTV.
The bankruptcy filing by Dallas-based Steward Health Care in May set the stage for this development, after which the health system began divesting its assets, including all its hospitals, through a court-supervised sale process. In the strained financial landscape, such strategic moves are symbolic of the healthcare industry's volatile nature. Under the terms of the agreement, Orlando Health's proposal will serve as the baseline for any forthcoming bids until the August 26th deadline, as initially reported by FierceHealthcare.
Emphasizing the potential value of the transaction, Mark Rich, president of Steward Health Care, highlighted the caliber of the facilities involved. "The emergence of Orlando Health, a premier health system with extensive operations in and around Florida, as the leading qualified bid committed to purchasing these assets reinforces the attractiveness of these best-in-class assets," Rich stated, per a FierceHealthcare report. An auction approved by the bankruptcy court could ensue if other, higher, or superior bids are submitted before the end-of-month deadline.
Orlando Health, which already operates an extensive network including 17 hospitals and numerous emergency and specialized care programs, sees this acquisition as a means to further its mission. David Strong, the president, and CEO of Orlando Health, conveyed optimism about replicating the organization's history of enhancing care in newly served communities. He told FierceHealthcare, "We have seen repeatedly that when Orlando Health enters a new area, patient care improves, relationships with physicians and team members grow stronger and surrounding communities benefit." The transaction's closure, subject to customary closing conditions and necessary approvals, is anticipated for the fourth quarter, pending the outcome of the auction.
While Steward Health Care has been navigating through financial struggles, contrasting maneuvers have taken place within its broader network. Only this week, the company agreed to sell its physicians network, Stewardship Health, to Rural Healthcare Group, a private equity group affiliate, for $245 million.
