New Financial Distress Hits Hospital Operators Managing Medical Properties Trust Portfolios

New operators for Medical Properties Trust hospitals are reportedly failing to pay vendors and taxes, signaling further instability for the major healthcare REIT.

By: AXL Media

Published: Apr 15, 2026, 11:22 AM EDT

Source: Bisnow

Emerging Liquidity Crises for Healthcare Operators

The stability of the healthcare real estate sector is being questioned again as the new management teams installed at several Medical Properties Trust (MPT) facilities face mounting financial pressure. According to recent court filings and reports, operators Michael Sarian and Faisal Gill—who took over several former Steward Health Care sites—are being targeted by lawsuits from vendors. These service providers claim they have not been compensated for critical needs including medical staffing, security, and fire protection. This pattern of non payment suggests that the transition of these assets away from bankrupt predecessors has not yet stabilized the underlying business operations.

Strategic Impact on Medical Properties Trust

For the publicly traded landlord Medical Properties Trust, these developments represent a concerning continuation of a broader financial crisis. Over the last two years, MPT has reported losses exceeding $1 billion, largely attributed to the high profile bankruptcies of its primary tenants. While the REIT recently secured $2.5 billion in debt and reached settlements with operators like Prospect Medical Holdings, the inability of new tenants like Healthcare Systems of America (HSA) to meet financial obligations could lead to further devaluations. The recurring nature of these "subperforming" tenancies threatens the REIT’s ability to project stable cash flows to its shareholders.

Operational Failures and Safety Allegations

The financial distress is manifesting in operational risks that extend beyond the balance sheet. In Texas, HSA is reportedly delinquent on tax payments to at least two counties, while a whistleblower lawsuit in Florida paints a grim picture of facility management. The lawsuit alleges that managers refused to fund necessary elevator repairs and instructed staff to provide misleading information to regulators regarding safety violations. Furthermore, in California, former Prospect hospitals managed by HSA are reportedly failing to pay their full rent, indicating that the contagion of financial instability is spreading across the REIT’s geographic footprint.