Orlando Health was set to become the new owner this week of Sebastian River Medical Center and some local medical practices owned by Steward Health Care, and Steward’s financial shenanigans should soon be just a bad memory for local patients, doctors and hospital employees.
The transfer of ownership was scheduled to take place today, Thursday, October 24th.
Hopefully the vast majority of the local vendors who supply Sebastian River with every-thing from food to utilities to lawn care now will get from the bankruptcy court some or all of the money Steward owed them.
Presumably bills will get paid promptly going forward under nonprofit Orlando Health’s management. North County residents who rely on SRMC, and island residents who like the convenience of the Sebastian hospital’s outpatient surgery facilities, could sure use some stability after nearly six months of the hospital being in Chapter 11 federal bankruptcy proceedings.
Today’s events at the newly branded Orlando Health Sebastian River Hospital were to begin at 6:30 a.m. with the night-shift staff meeting their new leadership team, and then with a press event at 7:30 a.m.
This was to be followed by gatherings of each shift of employees in Sebastian, plus ceremonies at two Brevard County hospitals also changing hands this week, becoming Orlando Health’s newest East Region facilities.
“The occasion will be marked with festive celebrations across the region, including simultaneous receptions at each of the three hospitals in the system. New team members will be able to meet, interact with and ask questions of current Orlando Health team members, human resource representatives and leadership,” a news release sent out on Monday read.
The “Go Live” celebration will wrap up at 9:30 p.m. at the West Melbourne hospital.
Among the Orlando Health executives making the rounds to the three acquisitions on Thursday will be East Region Senior Vice President Ohme Entin, who is charged with leading the three hospitals plus all growth along the Treasure and Space Coast, COO Steve Burriss, CFO Bernadette Spong, and President and CEO David Strong.
Orlando Health’s on-site Sebastian spokesperson Lisa Maria Garza said of Thursday’s events, “Members of the press are welcome to attend the celebrations at each hospital and document the events, which include opportunities to speak with team members and Orlando Health leaders.
Local community leaders may also attend if their schedule allows. We do not have a list of local community leaders set to appear. There is no open invitation to the public.”
In a complex deal which involved Steward’s mega-landlord Medical Properties Trust and the Stewardship Health physicians’ group, Orlando Health made a bid this summer for not only the hospital operations, but the land and buildings underlying the hospitals and certain Steward specialist practices.
“Orlando Health is acquiring the Steward Medical Group specialists on the Space Coast not the primary care group,” said Kena Lewis, Orlando Health assistant vice president, public affairs and media relations.
Vero Beach 32963 asked for a list of all of the local specialists whose practices would become a part of Orlando Health’s network of providers this week so area patients could be aware, but as of press time, that level of detail was not available.
“Orlando Health is purchasing physician practices in Sebastian and Vero Beach with specialties that include orthopedics, pulmonology, bariatric surgery, urology, cardiology, gynecology and cardiothoracic surgery,” Garza said. “The $439.4 million purchase price includes the three hospitals and related physician practices.”
In addition to the $439.4 million in cash paid for the three enterprises, Orlando Health assumed nearly $21 million in accrued employee paid time off, making the transaction a $460 million deal. Steward’s bankruptcy estate was reportedly set to receive a net $395 million after closing costs, to be used to help repay the company’s more than 100,000 creditors, with Medical Properties Trust receiving more a dozen hospitals as part of a massive settlement with Steward.
Up until the closing, Steward officials continued making all operating, financial and medical decisions at the Sebastian hospital, with Orlando Health on the sidelines.
Orlando Health will continue to operate and bill under certain Steward licenses while change of ownership documents are processed by federal and state regulators, Medicare, Medicaid and insurance providers.
It is not yet known which health insurance provider contracts Orlando Health Sebastian River Hospital will assume or renegotiate for in-network patient care coverage.
As the last of the Steward hospitals in nine states are auctioned off and sold, the bankruptcy proceedings continue, with at least two hearings scheduled for this week to hear evidence regarding creditors, and Steward’s questionable financial practices and contractual entanglements with landlord MPT which contributed to the corporation’s financial demise.
