Q1 2025 Medical Properties Trust Inc Earnings Call
Thank you for standing by my name is Bailey and I will be your conference operator today.
Speaker Change: At this time I would like to welcome everyone to the medical properties Trust first quarter 2025 earnings Conference call.
Speaker Change: All lines have been placed on mute to prevent any background noise. During this 60 minute call.
Speaker Change: After the Speakers' remarks, there'll be a question and answer session.
Speaker Change: I would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
Speaker Change: If you would like to withdraw your question Press Star one again.
Speaker Change: Thank you I would now like to turn the call over to Charles Lambert Senior Vice President. Please go ahead.
Speaker Change: Good morning, and welcome to the medical properties Trust conference call to discuss our first quarter 2025 financial results with me today are Edward K Junior Chairman, President and Chief Executive Officer of the company Steve.
Steven Hamner: Steven Hamner Executive Vice President and Chief Financial Officer.
Kevin Hannah: Kevin Hannah Senior Vice President controller, and Chief Accounting Officer.
Rosa Hooper: Rosa Hooper senior Vice President of operations, and Secretary and Jason from managing director asset management and underwriting.
Rosa Hooper: Our press release was distributed this morning and furnished on form 8-K, with the Securities and Exchange Commission.
Rosa Hooper: You did not receive a copy it is available on our website at medical properties Trust's Dot com in the Investor Relations section.
Rosa Hooper: Additionally, we are hosting a live webcast of todays call, which you can access in that same section.
Rosa Hooper: During the course of this call, we will make projections and certain other statements that may be considered forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These forward looking statements are subject to known and unknown risks uncertainties and other factors that may cause our.
Rosa Hooper: Financial results and future events to differ materially from those expressed in or underlying such forward looking statements.
Rosa Hooper: We refer you to the Companys reports filed with the Securities and Exchange Commission for a discussion of the factors that could cause the company's actual results or future events to differ materially from those expressed in this call.
Rosa Hooper: The information being provided today is as of this date, only and except as required by the federal Securities laws. The company does not undertake a duty to update any such information.
Rosa Hooper: In addition, during the course of the conference call, we will describe certain non-GAAP financial measures, which should be considered in addition to and not in lieu of comparable GAAP financial measures.
Rosa Hooper: Note that in our press release medical properties Trust has reconciled all non-GAAP financial measures to the most directly directly comparable GAAP measures in accordance with Reg G requirements.
Rosa Hooper: You can also refer to our website at medical properties Trust Dot com for the most directly comparable financial measures and related reconciliations.
Ed: I will now turn the call over to our Chief Executive Officer, Ed <unk>.
Charles Lambert: Charles and thanks to all of you for joining US this morning on our first quarter 2025 earnings call.
Charles Lambert: I'm pleased to be joined again today by Steve, Kevin Rosa and Jason, but before you hear from the rest of the team I'll spend a few minutes discussing the state of the market and a few recent strategic updates beginning with the broader market environment. It is important to note that despite all of the noise surrounding the macro economy health care has.
Charles Lambert: <unk> proven to be one of the most recession resistant industries across our portfolio operators continued to report strong results with increasing volumes and steady coverage.
Charles Lambert: Further any concerns surrounding the impacts of tariffs or proposed funding changes only serve to reinforce the importance of mpt's business model when hospitals need access to affordable capital solutions that enhance their financial flexibility and operational agility, that's where we come in.
Charles Lambert: We empower operators to replace expensive debt solutions immediately unlock a 100% of the value of their real estate and redirect those funds into patient care and we are confident in our ability to continue playing that role in this critical economic environment.
Charles Lambert: Turning to a few updates from the quarter in February we issued more than $2 $5 billion of seven year secured bonds at a blended coupon rate of approximately seven 8% strengthening our balance sheet and providing sufficient liquidity to cover all debt maturities through 2026.
Charles Lambert: As Roger will discuss in more detail shortly our new portfolio of tenants continues to ramp operations and facilities around the country.
Charles Lambert: Broadly speaking, we remain highly encouraged by the volume improvements being reported across these locations as well as the steps. These new operators are taking to upgrade facilities and importantly, all new operators, except for inside who owned less than $100000 were current on rent.
Charles Lambert: Through the first quarter.
Charles Lambert: Ohio inside health has been had been making considerable progress turning around performance at two facilities in Trumbull County. However, those efforts were interrupted by disputes between steward health care as advisors and insight regarding the distribution of cash collections from insights revenue under the terms of the transition.
Charles Lambert: <unk> services agreement, we're working with insight and government officials to explore all viable solutions to restore full operations at these facilities as soon as possible.
Speaker Change: A word briefly on prospect before turning it over to Rosa in line with the terms of our global settlement agreement with prospect and as other creditors.
Charles Lambert: Bankruptcy Court approved in March <unk>.
Speaker Change: <unk> and its advisers are in the process of marketing the prospect assets.
Speaker Change: With the progress of our new operators are making across most markets. This steady contributions from our stabilized portfolio. We remain confident in our ability to reach total annualized cash rent of more than $1 billion. Once our new tenants are fully ramped.
Speaker Change: As we continue with this progress we look forward to opportunities for accretive growth and increasing shareholders' return.
Speaker Change: Frozen.
Speaker Change: Thank you Ed turning now to some of the highlights across our portfolio.
Speaker Change: Overall, operator trends remain largely consistent with our observations over the past few quarters.
Speaker Change: As publicly traded operators have recently reported in the first quarter of 2025 hospitals have produced strong revenues driven by reimbursement rate increases and admission trends within our portfolio. We continue to see strong growth in admissions and right in.
Speaker Change: President.
Speaker Change: On a trailing 12 month basis, we saw an uptick in year over year EBITDAR coverage across asset types, driven by improved volume and strategic expense management.
Speaker Change: I'll begin with the new tenant in our transitional portfolio with cash rent ramping through the fourth quarter of 2026.
HSA, which operates eight hospitals in South, Florida, Texas, and Louisiana commenced rent payments as scheduled in March.
Speaker Change: Performance has trended up, particularly in south, Florida, driven by topline growth on higher volumes in Louisiana, and Texas HSA remain focused on expanding inpatient capacity re engaging key physicians and improving operational efficiency.
Speaker Change: Honor health, which operates in the Phoenix Metro area remains engaged and enhancing physician alignment in the market and upgrading facilities ahead of anticipated volume recovery.
Speaker Change: Honor is executing our capex strategy for 2025 that includes $60 million.
Speaker Change: <unk> funded improvements spread across its new facilities.
Speaker Change: Quorum health, which operates two facilities in West, Texas has committed to recruiting physicians and staff to recapture volume.
Speaker Change: Ramping up new service lines and upgrading facilities.
Speaker Change: In March for them also finalized an agreement to obtain ownership of stewards remaining I T and revenue cycle transition service agreements.
Speaker Change: Holly tail. This operating one MPT behavioral health facility in Phoenix they.
Speaker Change: Been ramping up capacity at the facility and now have a license for 127 beds.
Speaker Change: With 30 beds opened so far they are actively adding beds on a regular basis and expect to be at full capacity within the next few months.
Finally, Tinder health took over operations at Sharon regional in Pennsylvania, and reopened the facility in March Pinner is now expecting an 18 executing an 18 month plan to fully stabilize the facility and to facilitate this plan recently.
Speaker Change: Secured new financing from a local community entity.
Speaker Change: Turning now to our more established portfolio of operators and beginning with Europe.
Speaker Change: In the U K three of the operators and Mpt's portfolio have been nominated for health investors Private Hospital group of the year Circle payout Priory and Ramsey.
Speaker Change: Circle Health continues to benefit from increased private medical insurance utilization.
Speaker Change: To capitalize on these market tailwind circle is investing in innovative technology, such as robotics and AI and.
Speaker Change: <unk> continues to report strong performance driven by increasing surgical volumes and patient acuity as more complex cases are being addressed in the private sector.
Speaker Change: The need for mental health care services has never been greater within the U K and prior rate the largest independent mental health care provider in the UK has maintained steady performance based on strong reimbursement trends and increased patient acuity.
Turning to Priory parent company made in these German assets have performed well through Q4 2020 for.
Speaker Change: This solid performance is largely attributable to an improving reimbursement rate environment and increasing occupancy trends.
Speaker Change: Swift Medical's performance has benefited from a combination of continued cost optimization efforts and top line growth driving high single digit EBITDAR growth with the planned integration of recent acquisitions Swift Medical's consolidated revenues are.
Specced it to increase by approximately 100 million Swiss francs in 2025 and.
Speaker Change: And in January 2025, Swiss medical continued to grow its integrated care model with the addition of a second care region with 10 medical centers.
Speaker Change: In April MPT invested approximately 50 million Swiss franc, and the <unk> joint venture in Switzerland to facilitate the platform acquisition of a strategically valuable general acute facility.
Speaker Change: Turning to the U S. Ernest Health consolidated EBIT darn coverage remains excellent at two one times.
Speaker Change: Alright legacy Earth are performing very well and newer developments are moving closer to fully ramped capacity.
Speaker Change: Given the success of its first inpatient rehab unit at the Provost Al Tac Ernest is pursuing plans to open two more inpatient rehab unit at the post falls and billings L tax in 2025.
Speaker Change: Life <unk> health continues to report strong topline revenue growth driven by increased admissions, particularly economy memorial were trailing 12 month admissions increased 17% year over year.
Speaker Change: Life point behavioral reported another quarter of consistent operating performance with higher admissions growth year over year in 2025 live behavioral will remain focused on increasing outpatient volumes to drive increased revenues.
Speaker Change: Finally.
MPT three hospitals operated by surgery partners.
Speaker Change: These facilities have performed exceptionally well with combined coverage greater than seven times.
Speaker Change: In closing <unk>.
Speaker Change: <unk> is clearly well positioned to benefit from enhanced cash flows across a better diversified portfolio than ever before with our stabilized portfolio, producing steady or improving performance and our transitional portfolio ramping as expected we are.
Confident in our ability to create value for shareholders moving forward Kevin.
Rosa Hooper: Rosa. This morning, we reported a GAAP net loss of <unk> 20 per share and normalized <unk> were a positive <unk> 14 per share for the first quarter of 2025 is worth pointing out that first quarter net loss of normalized <unk> when compared to the fourth quarter of 'twenty four or.
Rosa Hooper: Or affected by the partial quarter impact of our February debt refinancing transactions.
Rosa Hooper: Amortization of cash rent payments from a small town, who made a onetime catch up payment of $10 million in the fourth quarter and higher stock compensation expense, we expect the second quarter normalized <unk> will be reduced by an additional approximately <unk> <unk> per share due to the full previously projected quarterly impact of higher.
Rosa Hooper: Interest expense, resulting from our refinancing transactions.
Rosa Hooper: The increased stock compensation expense results from a change in the fair market value of 2020 for performance based equity compensation of which no shares have invested and that none of these shares will ever vest unless the market price of our stock exceeds $7 for 28 consecutive days.
Rosa Hooper: During the quarter, we recorded approximately $73 million in impairments and fair market value adjustments to our investments in prospect real estate in Connecticut and in PHP. These.
Rosa Hooper: These adjustments were made according to third party appraisals and approved restructuring terms actual recoveries may ultimately differ from these book values further we impaired our mortgage investments in Columbia by approximately $11 million as the government continues to limit reimbursement to hospitals normalized <unk> was also adjusted for an approximate.
Steve: $12 million negative fair value adjustment related to marketable securities such as our investment in <unk> with that I will now hand, the call over to Steve.
Steven Hamner: Thank you Kevin I would just make a couple of brief comments that basically reiterate our near term perspective, I will not go through the details of the February secured notes offerings, except to point out again that it was a significant culmination of two years of carefully executed transactions designed to reduce debt.
Steven Hamner: Extend maturities and provide liquidity all at market valuations that demonstrate the resilience of well underwritten hospital real estate and the long term sustainability of our business model of net leased hospital real estate.
Steven Hamner: But I will describe one detail of this refi.
Steven Hamner: At quarter end, we felt it prudent to build some additional cushion for the covenant that measures our ratio of unencumbered assets to unsecured debt.
Steven Hamner: At that time, we had not completed our evaluation of the need for impairments as of quarter end and we wanted this cushion and an abundance of caution.
Steven Hamner: Drawing cash only secured revolver has the effect of increasing that cushion.
Steven Hamner: The amount we borrowed on March 31 were fully repaid on April one we.
Steven Hamner: We remain and expect to remain within all covenants required by the secured and unsecured notes and the revolving credit facility.
So our focus is on our existing portfolio of hospital real estate that continues to perform in accordance with lease terms, including annual inflationary escalations and over the remaining three quarters of 2025 cash rent solely from the former steward facilities are scheduled to increase from the 4 million.
Steven Hamner: <unk> received in this first quarter to more than $23 million in the fourth.
Steven Hamner: That's more than $90 million annualized and investors can make their own estimates of an appropriate equity capitalization rate for that incremental revenue.
Steven Hamner: And that incremental revenue is scheduled to continue growing to total contractual annual cash rents of $160 million from these hospitals by October 2026.
Steven Hamner: The first quarter results of course include no revenue or other proceeds from any prospect assets or from certain of our Colombian real estate assets, which have a book value of about $112 million.
Any such revenue of proceeds we will of course be available to further add to our operating and balance sheet strength.
Steven Hamner: We're not in a position to predict these outcomes today, but it is important that with the balance sheet repositioning we have completed over the last couple of years, we have multiple options to continue to use the demonstrated value of our performing assets for further de levering and repositioning as we may decide.
Steven Hamner: As we previously described those options still include resolution of the prospect assets through sales and re tenanted possible other asset sales joint ventures, and other transactions to reposition and rationalize our equity value.
Steven Hamner: And with our current level of near term maturities and liquidity, we have the freedom to be patient.
Steven Hamner: Even if we assume no external growth our expected cash earnings escalade annually and weekend Ho macroeconomic conditions stabilized.
Steven Hamner: Lastly, as Ed emphasized we are pleased with the operational performance that our new operators are achieving.
Steven Hamner: This performance along with the very public and widespread support of local state and federal government officials and health care advocates yet again demonstrates the importance of and the demand for these infrastructure like hospital assets.
Steven Hamner: Because our underwriting is designed to identify hospitals that we believe are critically necessary to their communities. This performance in public support is what we expected.
Steven Hamner: And from a financial perspective, MPT as landlord has gone above and beyond to demonstrate our long term commitment to keeping these hospitals opened.
Steven Hamner: We have invested in the facilities, we have made working capital loans to facilitate the steward transition and we have agreed to lengthy periods, where rent payments are not required.
Steven Hamner: Along with our own efforts the new operators are devoting time effort resources and their own finances to serve patients across many spectrums of care.
Steven Hamner: And we can point to government officials and representatives in Ohio, and Pennsylvania, who we see working out of public view on behalf of patients and employees in their own and even other jurisdictions.
Steven Hamner: All of that is why we remain firm in our belief that these hospitals need to and will stay operating in their communities.
Steven Hamner: Again this is what we expected.
Steven Hamner: What we did not expect.
Steven Hamner: And what is virtually inexplicable to us are the apparent roadblocks in front of these efforts to keep the hospitals open and operating.
Steven Hamner: The managers of the Stewart bankruptcy process for example have pay professional fees now approaching $400 million.
They are collecting from Medicare Medicaid state reimbursement programs and commercial insurers amounts for medical surgical and other treatment services that the new operators are providing to patients.
Steven Hamner: Our tenant into Ohio hospitals believes it is more than $20 million that has been collected by the bankruptcy state, but not related to the operator.
Steven Hamner: Most recently another of the replacement operators was notified that the bankruptcy state is seeking to retain $55 million.
Steven Hamner: In Florida, Medicaid supplemental funds that would not have been paid had not the new operator contributed approximately $30 million to the program in late December.
Steven Hamner: These disputes are all apparently subject to defense by the professionals managing the Stewart bankruptcy and they are being addressed in bankruptcy court. Our point is that these new operators are diligently treating patients even though substantial payments for these services are being withheld from them.
Steven Hamner: Thankfully, we believe these operators will soon be able to bill and collect for themselves.
Steven Hamner: Meanwhile, MPT has continued to cooperate with and support these local communities, including financially while the Stewart transition process finally unwind.
Steven Hamner: For example, during the first quarter in order to accelerate this unwinding process, we agreed to repurchase certain real estate interest we had previously exchanged for value with a secured creditor.
Steven Hamner: Along with funding another small operator obligation this aggregates about $40 million.
Steven Hamner: We're actually happy to have these assets back because we believe we will get much more value out of them than the secured lender could have.
Bailey: And with that I will turn the call back to Bailey to queue any questions.
Bailey: At this time I would like to remind everyone in order to ask a question Press Star and then the number one on your telephone keypad.
Please limit to one question and one follow up.
Speaker Change: Your first question comes from the line of Michael Carroll with RBC capital markets. Please go ahead.
Michael Carroll: Yeah. Thanks, Steve I wanted to follow up on your I guess your prepared remarks. Your last two comments do you think that there is risk to the steward transitioned assets those new operators and being able to have the rent ramp up versus what you would expect given.
Michael Carroll: Given your comments regarding the issues within the Stewart bankruptcy process, and then not being able to collect the payments that are potentially owed to them.
Michael Carroll: No I don't think so for a couple of reasons number one I pointed out the Ohio situation and I think we had already described that.
Michael Carroll: It's very limited in any case, it's a $100000 that went uncollected thats all that win uncollected in the quarter.
Michael Carroll: And my point really was.
Michael Carroll: What was that these operators are doing as well as they are in the face of.
The disruption in not being able to collect what theyre actually billing we are hopeful.
Michael Carroll: That the transition will be fully moved away from steward and it already is for some of the operators.
Michael Carroll: But we think that will be complete in the very near future and this issue will resolve going forward.
Speaker Change: Okay, and then could you talk about $40 million investment.
Speaker Change: It was that made during the quarter what type of asset did you get back from that and are you getting Ryan Im not asset now and or do you plan on selling that asset in the near term.
Speaker Change: We did do it during the quarter those assets represent.
Speaker Change: Assets that were originally part of steward campuses for example, just as an example.
Speaker Change: A big piece of it as a parking lot.
Speaker Change: And the parking lot was not necessary for the hospital operations other than to have contractual access to parking which the hospital did.
Speaker Change: The secured creditor to which we transferred rights to it well over a year ago was unable to marketed and monetize it.
Speaker Change: Really because it was still connected to and part of the hospital and so we were very happy to be able to get that back and frankly, we got it back at a significant discount to what the original transaction was and it will remain part of <unk> could be monetized.
Speaker Change: As part of the hospital. That's a typical example, where the vast majority of those micro we will collect rent on.
Speaker Change: Okay and then just last for me were there any other investments that occurred in the quarter I didn't see the supplemental section that highlight your investments in this up this time around in your debt seemed a little bit higher than what I would've expected. So is there any other cash outflows that we should be aware of that kind of explain some of that.
Speaker Change: We've made a relatively modest investment in an additional hospital in Switzerland with <unk>.
Speaker Change: Okay. So just those just add $40 million deal on the <unk>.
Speaker Change: Yes.
Speaker Change: And as part of the transition very early in the quarter I think very early in January we did add to the Florida, operator, working capital loan to the extent of $10 million.
Speaker Change: Okay. Thank you.
Speaker Change: Your next question comes from the line.
Speaker Change: George.
Speaker Change: In cars with no debt.
Securities. Please go ahead.
Speaker Change: Hi, This is George <unk> on for Vikram can.
Speaker Change: Can you just saw sort of what are you monitoring on the regulatory side and any potential Medicaid cuts like what are your expectations.
Speaker Change: In a scenario, where you see some severe severe budget cuts.
Speaker Change: Georgia, if you listened to our last earnings call. We welcome some of those Medicare cuts as you know Medicare doesn't just cover reimbursement to hospitals.
Speaker Change: A very broad basket of items that we believe would be better served if it went to hospitals. So we at this point don't have any of our tenants that are nervous about any potential changes to Medicare or Medicaid.
Speaker Change: Okay, and if I may squeeze a second question.
Speaker Change: And I expect to provide any loans to any of the operators and the new currently have any tenants on your watch list that you are closely monitoring.
Speaker Change: So we don't expect to make any loans, we don't have any situations, where we think that that would come up and we currently don't have any operators on our watch list.
Speaker Change: Great. Thank you for taking my question.
Speaker Change: Your next question comes from the line of John Karen Koski with Wells Fargo. Your line is open.
Speaker Change: Good morning, Thank you.
Speaker Change: My question is this on two operators you mentioned no no operators on the watch list, but I know that there were there are a couple of situations that are watching there was in <unk>.
Speaker Change: Operator.
Speaker Change: <unk>.
Speaker Change: Dealing with the government holding back of reimbursement and then there was another one that was 1% of assets that you had got $10 million or last quarter, but I think that was a one time Chuck could you give some color on how.
Speaker Change: Those processes are going.
Speaker Change: So the 1%.
Speaker Change: The $10 million was a catch up in rent. They remained current on the rent schedule now.
Speaker Change: Really spoke to the CEO of that operator yesterday and they had their best quarter in a long time. So they believe they are very much on track. We believe their operations are back where they should be from Columbia standpoint, the hospitals and all of Colombia continue to perform well there is a.
Speaker Change: Political fight trying to get some healthcare reforms by the current president and he's using.
Speaker Change: The reimbursement to their system as a way to help pressure the politicians there to go along with this reform.
Speaker Change: We are not concerned about the long term viability. We obviously are concerned about when they will start getting full reimbursement from the government, but we think it's just a matter of time not a matter of this.
Speaker Change: Okay. Thank you and then maybe just on prospects following the quarter approval.
Speaker Change: How do you expect that process to go I guess as far as timing is concerned.
Speaker Change: So it's a little bit different door, a lot different I should say than the steward process. When we prospect in the other creditors reached an agreement early in this process.
Speaker Change: We expect that we will have the.
Speaker Change: The new the potential new tenants in the hospitals late.
Speaker Change: Identified late May early June and then closing as soon as regulatory can happen after that.
Speaker Change: Alright, thank you.
Speaker Change: Your next question comes from the line of Tayo Okusanya with Deutsche Bank. Your line is open.
Tayo Okusanya: Hi, Yes, good morning, everyone.
Tayo Okusanya: First of all just solid outdoor rose more impressed with all the details and give them the operational overview.
Tayo Okusanya: Very helpful.
Tayo Okusanya: Tayo.
Tayo Okusanya: Yeah.
Tayo Okusanya: Carl.
Tayo Okusanya: <unk> ramp up for these.
Tayo Okusanya: And then I guess.
Tayo Okusanya: Give us an overview of how exactly that works.
Tayo Okusanya: In terms of is the arrangement that.
Tayo Okusanya: Clients or kind of all of the excess cash flow to kind of ramp up to that $40 million a quarter is there a comparable set based on how much earnings.
Tayo Okusanya: Last quarter, how much they have the kind of pain, you with trying to understand how that works.
Tayo Okusanya: Yes tayo.
Tayo Okusanya: A percentage of the rent not based on revenue or on their income for example.
Tayo Okusanya: At the beginning and each lease is slightly different they go from 25% to 50% to 75% to 100 and the by the time that we get to a 100% is where fourth quarter over fourth quarter 2006.
Speaker Change: Okay Thats helpful.
Speaker Change: Then in terms of again at March 31, the drawdown on the line the kind of mix are you guys are okay with the covenants.
Speaker Change: Curious now that you've kind of you've kind of settled in with the with the write down associated with prospect.
Speaker Change: That's something you would expect to occur.
Speaker Change: At the end of a quarter or now that you're kind of solidified what you write down numbers are you kind of have a much more hands.
Speaker Change: What youll coverages that you may not have to do that going forward.
Speaker Change: Well in retrospect, we didn't have to do it even at the end of the quarter had we not made that drawdown, we still had sufficient comfortable cushion even had we not done it.
Speaker Change: The reason we did it is as I said in my remarks was because we were still working on.
Speaker Change: On the impairment calculations and as it turned out as I say, we had we had plenty of room, even had we not done that.
Speaker Change: To answer your question going forward, it's available to us.
Speaker Change: Banks are perfectly satisfied with it.
Speaker Change: Was the plan all along that this would give us that type of cushion should should we need it.
Speaker Change: But theres no expectation as we sit here today that we will or will not needed it depends on a number of things frankly.
Speaker Change: Yes.
Speaker Change: That's helpful. Thank you.
Speaker Change: Thank you and I will now turn the call back over at <unk> for closing remarks.
Speaker Change: Thank you very much I do have an unplanned comment I'd like to make.
Speaker Change: Over the last year of walking through the Stewart bankruptcy I've reflected on the different reactions and actions of.
Speaker Change: Many different people involved.
Speaker Change: Bankruptcy process itself was obviously very painful those controlling the process didn't always have as their number one priority of the patients or the communities.
Steve: Some politicians use this as an opportunity to further their own political agendas as opposed to finding ways that we can all work together for the best outcomes of each community affected Steve.
Speaker Change: As Steve has commented on the more than $100 million that MPT has put in voluntarily to help keep these hospitals open but we haven't been alone in our fight to save these hospitals and at the risk of inadvertently leaving someone out let me do my best to call out some of the real heroes by name in some of those that I don't know.
Steve: Their names.
Steve: Let me start with judge Marvin Esquer and judge Lopez of the bankruptcy court in Houston.
Speaker Change: They recognize that the process that was in place defined replacement operators for Stewart hospitals wasn't working.
Speaker Change: And in August of last year Judge <unk> invited me to Houston to look for a solution.
Speaker Change: He works tirelessly to give MPT the opportunity to re tenant these hospitals he and we obviously didn't have much time starting in early September.
Speaker Change: He literally work 24 hours a day to find a solution that judge Lopez could approve.
Speaker Change: And then he worked with the parties for months to implement those solutions.
Speaker Change: So without judges girl and judge Lopez, none of this would've been possible.
Speaker Change: No judge <unk> well over a five month period of time, he's an outstanding person and a terrific mediator and we appreciate all that he did for the people and all of the communities to ensure that these hospitals stayed open.
Speaker Change: In Pennsylvania, our worked night and day with judge <unk> and Deputy Attorney General, Jim Donahue defined solutions in Sharon, Pennsylvania.
Speaker Change: Jim and judges Gerdau spent many hours late into the night and the holidays working to do what we could for Sharon.
Speaker Change: State Senator Michelle Brooks reached out to me to find ways that we could work together to find funding for the hospital there and Sharon.
Speaker Change: I can tell you heard commitment to that community is truly second to none and her willingness to work with MPT was very much appreciated.
Speaker Change: And Ohio, I've gotten to know us Senator Bernie Marino Senator Marino reached out to me to work with NPD to find solutions for the two facilities there.
Speaker Change: Senator Merino, who has been a breath of fresh air and a real pleasure to work with and we both are working very hard to keep these two hospitals in Ohio open.
Speaker Change: In Florida, Texas, Arizona, and Arkansas, while I don't know the names of the state officials, there, but without exception the attorney general offices, the departments of health and others have truly been can do people people, who jump through hoops to work with us and judge is geared to ensure that.
Speaker Change: Our community hospitals date open.
Speaker Change: They offered help at every turn not roadblocks and I am truly sorry, I don't know their names to give them the credit they deserve.
Speaker Change: While there have been people with personal agenda as in other states people, who havent wanted to let a crisis passed without using it for their benefit.
Speaker Change: Truly the vast majority of the people that I came in contact with during this whole process.
Speaker Change: The true unsung heroes and it's been my honor to work with each and every one of them.
Speaker Change: We look forward to moving forward from this point and again, we thank you all for being with US today and if you have any additional questions. Please don't hesitate to reach out to Tillman drew.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you for joining you may now disconnect.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.