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. Optum has notified the Health Policy Commission that they are no longer in the process of finalizing the agreement with Steward regarding the sale of Stewardship Health to Optum Care. However, the companies have yet to withdraw the deal’s material change notice filings with the HPC.
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. House Speaker Ronald Mariano 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.
Spokespeople for Optum did not respond to a request for comment immediately. In a statement on a Friday afternoon, Steward mentioned that the DOJ regulatory review process was difficult and that Steward and United Optum have decided against moving forward with the sale. 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 Health 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.