The sale of Steward Health Care’s physician network to for-profit insurer Optum has been called off, as confirmed by state officials on Friday. This move raises questions about the future of the bankrupt hospital system and its hospitals and providers in Massachusetts. The regulatory review process by the Department of Justice was challenging, leading to the decision not to move forward with the sale.
Optum informed the Health Policy Commission that they are no longer pursuing an agreement with Steward for the sale of Stewardship Health to Optum Care. However, the companies have not withdrawn their material change notice filings with the HPC. In a statement on Friday, Steward announced that negotiations are ongoing with other interested parties for the acquisition of its business.
The potential sale was first announced in March but never submitted necessary information to begin a review process required for it to proceed. Many state and federal lawmakers voiced concerns about it, including House Speaker Ronald Mariano who warned about its impact on healthcare market competitiveness in Massachusetts. Optum did not respond immediately to requests for comment.
Steward emphasized that Stewardship Health is a valuable asset that provides excellent care for patients and highlighted negotiations are still underway with other interested parties for its acquisition, which will be crucial to Steward’s bankruptcy restructuring process still ongoing with bids expected next month from Massachusetts hospitals. An investment banker working on behalf of Steward informed U.S Bankruptcy Court that this sale was part of company’s strategy to reduce debt and secure liquidity for operational purposes.