Boston, Massachusetts – State health care officials were notified Tuesday about a potential sale involving Stewardship Health Inc. and its contracting Steward Health Care Network to OptumCare, a subsidiary of UnitedHealth Group. The proposed transaction raised concerns about the impact on health care delivery and costs both in Massachusetts and nationally.
The acquisition of Steward Health Care’s physician group by Optum Financial of Minnesota marks a significant change in the landscape of medical providers. Stewardship Health Inc., the parent company of Stewardship Health Medical Group Inc., employs primary care physicians and clinicians across nine states, according to the Health Policy Commission.
HPC Director David Seltz stressed the importance of scrutinizing the details of the proposal to assess potential impacts on health care costs, quality, access, and equity. The sale is contingent upon the HPC’s review, along with any necessary reviews by state or federal antitrust authorities.
Following the submission of all required information, the HPC has a 30-day window to evaluate the transaction’s potential effects. If the sale is expected to significantly influence health care costs and market dynamics, a full Cost and Market Impact Review may be initiated, a measure rarely employed in the past.
The financial challenges faced by Steward have garnered widespread attention, leaving the future of its Massachusetts assets uncertain. The HPC emphasized that any transactions involving the sale of Steward’s Massachusetts hospitals would undergo thorough review by the agency and the Determination of Need program at the Department of Public Health.
Senator Ed Markey expressed concerns regarding Steward’s financial instability and urged a shift away from the organization’s precarious financial situation. He called for Optum to prioritize cost control, patient welfare, and provider interests in maintaining health care access in the state.
In response to inquiries about future changes, Steward Operations Holdings LLC indicated plans to provide notifications regarding transactions involving acute care hospitals and other provider operations within the next year. The evolving landscape of the health care industry in Massachusetts raises questions about the impact of such deals on the community and underscores the need for careful oversight to safeguard patient care and market stability.