Boston, Massachusetts – Members of the Massachusetts Policy Commission board are facing a daunting task as they delve into evaluating the proposed sale of Steward Health Care’s physician network to UnitedHealth Group’s Optum. The potential sale has raised concerns about the impact on patients and the viability of small community hospitals, prompting Commissioner Barbara Blakeney to describe the situation as “mind-bogglingly complex and potentially harmful.”
Stewardship Health, the physician network in question, is set to be sold to Optum, as outlined in initial filings with the commission. The financial struggles of the Texas-based Steward group have put its 2,950 physicians, making it the state’s third-largest physician network, in a precarious position.
Optum’s acquisition would expand its presence in Massachusetts, where it already oversees Reliant Medical Group, Atrius Health Services, and MedExpress urgent care centers. With approximately 975 physicians under its management in the state, Optum’s move to absorb Stewardship Health is part of its broader strategy to grow its network, having acquired or hired 20,000 doctors in the past year alone.
As part of the review process, the HPC is working to identify how the sale would impact physicians and their relationship with Steward’s hospitals. This sale is part of Steward’s larger recovery framework, released in February, aimed at stabilizing the organization amid financial challenges.
The complexity of the transaction has raised concerns about its implications for patients and healthcare spending, prompting a thorough review by state and federal authorities. The HPC has received notice of numerous provider transactions involving for-profit entities like Steward, underscoring the significance of this particular sale in the healthcare landscape.
The proposed transaction has drawn criticism from various quarters, including state officials and lawmakers who have expressed skepticism about the deal. Concerns about private equity’s role in the healthcare system have also come to the fore, with calls for tighter regulation and increased oversight to prevent predatory practices that could harm patients and providers.
The HPC is actively researching the impact of private equity investments in healthcare, highlighting potential risks and proposing policy recommendations to mitigate negative outcomes. As the commission works towards greater transparency and regulatory measures, the debate around the Steward-Optum deal underscores the broader challenges facing the healthcare industry in Massachusetts and beyond.
In conclusion, the HPC’s decision to maintain the state’s health care cost growth benchmark at 3.6% reflects ongoing efforts to contain spending and ensure the sustainability of the healthcare system. With stakeholders grappling with complex issues surrounding ownership, competition, and patient care, the path forward will require careful consideration and collaboration to safeguard the interests of all involved parties.