HonorHealth to take over several Steward facilities

HonorHealth will assume operations of several Steward Health Care facilities in Arizona as a Senate committee weighs whether to hold Steward CEO Dr. Ralph de la Torre in contempt.

The Scottsdale, Arizona-based health system agreed to operate the locations during an interim transition period starting Wednesday. It anticipates taking full operational ownership in October, pending regulatory approval, a spokesperson for HonorHealth said.

Related: Judge approves $439M sale of 3 Steward hospitals

HonorHealth is now handling daily operations for Mountain Vista Medical Center in Mesa, St. Luke's Hospital in Tempe, Florence Hospital, Steward Mesa Hospital's emergency department and several outpatient physician practices, all in Arizona.

The HonorHealth spokesperson declined to share the names of the outpatient practices or how many the health system would operate.

Steward did not respond to a request for comment.

HonorHealth signed a long-term lease under the definitive agreement with landlord Medical Properties Trust. It is considering purchasing the buildings and land of the Steward facilities, the HonorHealth spokesperson said. The health system anticipates paying MPT at least $250 million over the next 15 years as part of the operations agreement, according to the spokesperson. Staff members working at the Steward facilities involved will be offered employment under HonorHealth.

The announcement follows an interim order from U.S. Bankruptcy Court for the Southern District of Texas, Houston Division Judge Christopher Lopez granting Steward approval to hand off operations for several facilities, including Florence, Mountain Vista and St. Luke's.

Dallas-based Steward, which filed for Chapter 11 bankruptcy protection in May, received separate approval this week to sell three Florida facilities to Orlando Health.

Leaders from the Senate Health, Education, Labor and Pensions Committee on Thursday said they would consider a resolution to hold de la Torre in contempt regarding his refusal to testify before Congress at a hearing regarding the system's struggles.