Steward Health Care, the country’s largest physician-led, minority-owned, integrated health care system, today announced that it has entered into a definitive agreement to sell Wadley Regional Medical Center in Texarkana, Texas to CHRISTUS Health, an international, not-for-profit Catholic health system.
CHRISTUS Health’s bid has been designated as the stalking horse and, subject to the terms of the agreement, will be subject to higher or better qualified bids received by September 9, 2024, at which time a bankruptcy court-approved auction may occur.
“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,” said John Castellano, Steward’s Chief Restructuring Officer. “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.”
The transaction is subject to customary closing conditions, including Bankruptcy Court and regulatory approvals. The transaction is expected to close in Q4 2024 should CHRISTUS Health emerge as the winning buyer at the auction.
Steward is represented by Weil, Gotshal & Manges (Restructuring Counsel), McDermott Will & Emery (Regulatory Counsel), Cain Brothers, a division of KeyBanc Capital Markets (Healthcare Investment Banker), Leerink Partners (Healthcare Investment Banker), and AlixPartners, (Financial Advisor).
