Deal With Real-Estate Investment Trust Helps Bring Down Another U.S. Hospital Operator

The report details how Medical Properties Trust (MPT) financially supported distressed hospital operator Prospect Medical Holdings through a series of transactions, including a quietly executed $100 million loan and purchase of overvalued hospital properties, which helped inflate reported earnings and rents. Internal communications suggest MPT knew valuations did not reflect real estate market value, while Prospect remained insolvent and struggled with rent, leading to write-downs and strategic moves to recoup losses via affiliated assets. The piece contrasts MPT’s rising payouts and stock performance with mounting evidence of financial fragility across its portfolio.