The sale of Steward Health Care’s physician network to for-profit insurer Optum has been called off, according to state officials, highlighting the uncertainty surrounding the bankrupt hospital system and the future of its hospitals and providers in Massachusetts. Optum has informed the Health Policy Commission that they are no longer pursuing an agreement with Steward for the sale of Stewardship Health to Optum Care, although the deal’s material change notice filings have not been withdrawn.
The potential sale was initially announced in March, but the necessary information for the HPC to review the sale was never submitted by the two medical providers. A number of state and federal lawmakers expressed concerns about the potential sale, with House Speaker Ronald Mariano stating that it could significantly impact the state’s health care market. Optum did not offer an immediate comment on the matter.
Steward released a statement on Friday afternoon, saying that the Department of Justice regulatory review process had proven to be challenging and as a result, Steward and United Optum have decided not to move forward with the sale. Stewardship Health continues to be a valuable asset providing excellent care for its patients, and there are other interested parties in negotiations for the acquisition.
The sale of Stewardship Health is a key component of Steward’s bankruptcy restructuring efforts, with bids due for Massachusetts hospitals next month. An investment banker representing Steward before the U.S. Bankruptcy Court emphasized that the sale of Stewardship was part of the company’s strategy to reduce debt and secure liquidity for their operations.