News
Optum pulls out of Steward deal
Photo: Courtesy of UnitedHealth Group
Optum is no longer pursuing a deal to buy physician group Steward Health Care, according to the Massachusetts Health Policy Commission.
Optum has informed the Health Policy Commission that it is no longer working to finalize a deal with Steward, HPC said. The parties have not yet withdrawn material change notification filings with HPC, the spokesperson said.
Optum declined to comment, saying it had nothing to share at this time.
WHY IS IT IMPORTANT
from Optum purchase of the Steward Medical Group in Massachusetts was a step in a bankruptcy restructuring process to sell the 31 hospitals in the troubled health system.
The Department of Justice filed an objection to the debtor-in-possession financing terms for Steward Health Care.
Steward cited a “challenging” review process at the federal Justice Department but said he continues to seek other buyers, according to WMUR.
THE BIGGER TREND
In March, Steward Health Care in Massachusetts had an agreement to sell its physician group to Optum Care. Steward Health Care – which operates nine healthcare facilities in Massachusetts – is currently facing significant financial insecurity as a result of previously accumulated debt.
In May, Steward announced that he would sell all your hospitals in a bankruptcy restructuring proposal. Steward owns 31 hospitals in eight states in Massachusetts, Arizona, Ohio, Pennsylvania, Arkansas, Louisiana, Texas and Florida.
Later in May, the Justice Department filed an objection for the deal. Specifically, the DOJ objected to Steward’s proposed sale of its medical services network, Stewardship Health, to UnitedHealth Group. The timeline outlined in the sale did not give the DOJ enough time to complete its review, the agency said.
Email the writer: SMorse@himss.org
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