The sale of Steward Health Care’s physician network to for-profit insurer Optum is no longer happening, according to state officials. This news underscores the uncertainty surrounding the bankrupt hospital system and the future of its hospitals and providers in Massachusetts. Spokespeople for Optum did not respond to a request for comment immediately, but Steward mentioned that the DOJ regulatory review process was difficult and that Steward and United Optum have decided against moving forward with the sale.
The potential sale was initially announced in March, but the necessary information for HPC to begin the review required for the sale to proceed was never provided by the two large medical providers. Numerous state and federal lawmakers raised concerns regarding the potential sale, including House Speaker Ronald Mariano who stated in March that the sale could greatly impact the competitiveness of the healthcare market in Massachusetts and cause further disruption during a time of instability in the healthcare system.
Stewardship Health continues to offer valuable care to its patients, and there are other interested parties with whom Steward is actively negotiating. The sale of Stewardship is a critical component of Steward’s bankruptcy restructuring, a process that is still ongoing with bids due for Massachusetts hospitals next month. According to an investment banker working on Steward’s behalf, the sale of Stewardship was the company’s way of deleveraging and securing liquidity for their operations.