Steward seeks to sell physician network to Optum

STEWARD HEALTH CARE is preparing to sell its physicians network to OptumCare, a subsidiary of the for-profit United Health Group, and hinted it is preparing to sell some of its hospitals in Massachusetts.

News of the sale of Stewardship Health, the parent of Stewardship Health Medical Group, to Optum was disclosed in filings with the Health Policy Commission, which typically reviews such transactions.

Stewardship Health Medical Group employs primary care physicians and other clinicians across nine states, according to the Health Policy Commission. Optum is a for-profit enterprise that previously purchased Atrius Health Services in 2022 and Reliant Medical Group in 2018, both physician networks and providers in Massachusetts. Steward is apparently trying to raise money to pay off debt and keep its other operations afloat.

“This is a significant proposed change involving two large medical providers, both in Massachusetts and nationally, with important implications for the delivery and cost of health care across Massachusetts,” HPC Director David Seltz said. “Details of the proposal will be reviewed by the HPC to examine potential impacts on health care costs, quality, access, and equity. The sale cannot be completed until after the HPC’s review and any concurrent review by state or federal antitrust authorities.”

Once all required information has been provided about the sale, the HPC will have 30 days to assess potential impacts of the transaction, according to the agency. If the sale is anticipated to have a significant impact on health care costs and market functioning, the HPC can initiate a full cost and market impact review, an option that it has often not pursued in the past.

Steward’s financial problems have received widespread attention in recent weeks and the outlook for its Massachusetts assets remains cloudy.  The HPC said that any transactions involving the sale of Steward’s eight Massachusetts hospitals would also require review by the agency, and review by the determination of need program at the Department of Public Health.

In its new notice of material change, Steward Operations Holdings LLC, in response to a question about other material changes anticipated in the next 12 months, wrote: “Steward anticipates providing Notices of Material Change regarding transactions concerning certain of its acute care hospitals and other provider operations in the next 12 months.”