HIALEAH, Fla. — The City of Hialeah has reached a settlement with the operators of Hialeah Hospital and Palmetto General Hospital that will recover more than $2.4 million in disputed water and sewer charges, ending a months-long disagreement over who should pay utility bills left behind after the hospitals changed ownership.
The agreement, finalized July 1, requires Healthcare Systems of America (HSA) to pay approximately $2.4 million for utility services provided after it assumed operations of the hospitals in late 2024. In exchange, the city agreed not to hold HSA responsible for utility charges incurred under the hospitals’ previous owner, Steward Health Care, which filed for bankruptcy in 2024.
The settlement represents one of the largest recoveries in Mayor Bryan Calvo’s campaign to collect delinquent utility accounts and strengthen Hialeah’s aging water and sewer system.
Settlement Resolves Responsibility Dispute
Under the agreement:
- Hialeah Hospital will pay approximately $1 million in post-acquisition utility charges.
- Palmetto General Hospital will pay more than $1.4 million.
- The city will credit roughly $300,000 in disputed penalties, interest, administrative fees, and late charges toward future utility bills.
Officials said approximately $561,000 in unpaid utility charges tied to Steward Health Care remains outstanding. Because Steward entered bankruptcy before selling the hospitals, recovering that money remains uncertain.
City officials say they will continue pursuing all available legal options to recover the remaining balance.
Both Sides Claim Victory
The agreement follows months of public disagreement between Hialeah officials and HSA over responsibility for the unpaid balances.
HSA argued it should never have been responsible for debts incurred before taking over the hospitals and said it repeatedly requested corrected invoices after assuming operations in November 2024.
“Our position has remained consistent from the beginning,” HSA Florida CEO Faisal Gill said in a statement, adding the company was prepared to pay once invoices reflected only the utility charges incurred under HSA’s ownership.
Gill also criticized the city’s handling of the dispute, saying officials attempted to collect debts accumulated by Steward Health Care before HSA assumed control of the facilities.
Mayor Bryan Calvo rejected that characterization.
“Our responsibility is to protect the interests of the taxpayers of Hialeah,” Calvo said. “Every dollar we recover is a dollar that stays working for our residents and the essential services they depend on.”
Following the settlement, Mayor Bryan Calvo’s office highlighted the agreement on social media, saying the city had recovered approximately $2.4 million in overdue water payments from Hialeah Hospital and Palmetto General Hospital. The post included oversized ceremonial checks representing the payments and described the recovery as part of the administration’s effort to protect taxpayers and strengthen the city’s finances.
Part of Broader Utility Collection Effort
The hospital settlement is part of a broader initiative launched by Calvo’s administration to recover millions of dollars in delinquent utility accounts accumulated over several mayoral administrations.
According to city officials, dozens of delinquent commercial customers have entered payment agreements, while others remain subject to liens, utility shutoffs, or additional collection efforts.
City records indicate several condominium associations, commercial properties, and other large utility customers also remain behind on payments.
Officials say recovering unpaid utility revenue is essential to maintaining Hialeah’s aging water and sewer infrastructure while ensuring institutional customers are held to the same standards as residential ratepayers.
What Happens Next?
Although the settlement resolves HSA’s responsibility for post-acquisition utility charges, more than $560,000 tied to Steward Health Care’s bankruptcy remains unresolved.
Whether the city ultimately recovers those funds will likely depend on the outcome of the bankruptcy proceedings and any future legal claims against Steward.
For now, city officials say the agreement represents significant progress while emphasizing that efforts to recover additional delinquent utility accounts across the city will continue.
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Sources
Hialeah City Council Agendas & Minutes
City of Hialeah Official Instagram
