In a disclosure that hints at further transactions, state health officials on Tuesday received notice related to the proposed sale of Steward Healthcare Network to UnitedHealth Group subsidiary OptumCare, which is under contract with Stewardship Health Inc. .
“Minnesota-based Optum Financial has acquired Steward Healthcare Physician Group,” Sen. Ed Markey’s office said in a press release.
Stewardship Health is the parent company of Stewardship Health Medical Group, which employs primary care physicians and other clinicians in nine states, according to the Health Policy Commission.
“This is a significant proposed change involving two large healthcare providers in Massachusetts and nationally, and will have a significant impact on healthcare delivery and costs across Massachusetts,” said HPC Director David Seltz. he said. “The details of the proposal will be scrutinized by the HPC to examine its potential impact on health care costs, quality, access, and equity. It cannot be completed until a simultaneous review by the authorities has been completed.”
The agency said that once all necessary information regarding the sale has been provided, HPC will have 30 days to assess the potential impact of the transaction. If a divestiture is expected to have a material impact on healthcare costs and market functioning, HPC can initiate a full cost and market impact review, which has often been pursued in the past. That’s an option I didn’t have.
Steward’s financial problems have received widespread attention in recent weeks, and the outlook for his Massachusetts assets remains uncertain. HPC said the transaction involving Steward’s sale of eight Massachusetts hospitals will also require review by the agency and the Department of Public Health’s Necessity Determination Program.
Democratic Sen. Ed Markey said in a statement: “Massachusetts’ health care system is in jeopardy as Mr. Steward recklessly takes on massive debts that continue to plunge hospitals in Massachusetts and across the country into financial crisis. “We must break free from financial instability.” “With this announcement, Optum must demonstrate that it can take on an even greater responsibility to maintain and protect access to health care in the commonwealth. We must do that by controlling costs and putting patients and providers first. I hope that it will be successful.”
In a new notice of material changes, Steward Operations Holdings LLC wrote in response to questions about other material changes expected within the next 12 months: The provider will begin operations within the next 12 months. ”
