Hospitals for Sale: How a Real Estate Giant Left a Trail of Financial Ruin

By Hannah Levintova and⁤ ashley Cleek

The dire situation at Glenwood Regional Medical Center in West monroe, louisiana, was laid bare before⁤ the Louisiana ‍House Health and Welfare Committee. The ⁤hospital, once a vital community resource, had descended into a state of alarming neglect, marked ⁣by critical lapses in patient care. The state Health Department ‍had been scrutinizing ⁣Glenwood for escalating problems, ⁢including the hospital’s inability to pay for essential supplies like oxygen, its blood bank, and ‍even crucial repairs to the⁢ elevators ⁣that transported ⁣patients to surgery.

Debra Russell, a former Glenwood nurse, testified to the harrowing reality faced by staff and patients. She recounted instances were a ⁣cardiologist was ⁣unavailable when a⁢ patient⁣ suffered a heart attack. The scarcity extended⁤ to basic medical equipment; a $5 ⁣piece of equipment needed for a routine procedure was often⁤ impossible to find.”You⁤ would send a nurse to go get it,” Russell recalled. “And she would come back and say, ‘Oh, Miss Debra, I don’t have any.’ I said, ‘Go ⁢to another⁤ unit.’…’We don’t have one.'”

At the time of thes⁤ revelations, Glenwood was ⁣operated by Steward⁤ Health Care, ⁢a company that had grown to become one of the nation’s largest for-profit health care providers. However, the physical building of Glenwood, like many other hospitals, was owned ‍by Medical Properties Trust (MPT), a real estate⁢ investment trust based in Birmingham, Alabama. MPT’s business model⁤ involved charging hospitals like Glenwood⁤ ample monthly rent.

State Rep. Michael Echols, whose district encompasses Glenwood, found himself inundated with concerns from his constituents.⁢ As he delved deeper, Echols began to suspect that the high rent demanded by MPT might be ⁣a significant⁢ factor in Glenwood’s escalating financial crisis. Yet, obtaining clear answers proved to be ⁢an arduous task.

Glenwood’s plight is not ⁣an isolated incident. MPT owns nearly 400 ⁤healthcare facilities across the country, which it leases ⁤to ⁣various hospital chains. The consequences of this model have been devastating for many communities. Nine companies that leased⁢ hospitals from ⁤MPT ⁣have⁢ since declared bankruptcy, including Steward, Glenwood’s former operator. While dozens of these leased hospitals have been⁤ sold, ⁤become entangled in lengthy bankruptcy proceedings, or been ⁤reduced to “depleted shells,” the top ⁢executives at MPT⁢ have continued to amass millions in earnings.

This week on Reveal, Mother Jones ⁤reporter⁢ Hannah Levintova and ⁤ Reveal producer Ashley Cleek embark on an ⁢in-depth investigation into Medical Properties Trust. They explore‍ the company’s history, dissect its unique business model, and illuminate how treating hospitals as mere financial assets can leave them critically ⁤weakened and ultimately gutted. Their reporting also highlights⁢ Levintova’s year-long ⁤project ⁢on Steward’s downfall, a extensive look at ⁢the systemic issues⁣ that led to the collapse of a major healthcare provider, including their collaboration ‍with Al Jazeera’s Fault Lines.