Steward Health Care, a financially struggling hospital operator, has agreed to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group. This decision comes as state monitors are closely monitoring the company’s nine health care facilities in Massachusetts. Before the sale can be finalized, the Massachusetts Health Policy Commission must review the proposal, although they do not have the authority to block the transaction. The sale would involve Optum acquiring a Steward affiliate that includes primary care doctors and other clinicians in nine states.
The Health Policy Commission is dedicated to conducting a thorough examination of the proposal to assess its potential impact on health care costs, quality, access, and equity. The sale cannot proceed until after the commission’s review and any additional reviews by state or federal antitrust authorities have been completed. There is uncertainty about the cost of the transaction as it was not included in the documents filed with the state. Both Steward Health Care and Optum have yet to respond to requests for comment, but House Speaker Ronald Mariano emphasized the importance of prioritizing patient access and affordability in their decision-making.
Once all necessary information about the sale has been provided, the Health Policy Commission will have 30 days to evaluate any potential impacts of the transaction. If it is determined that the sale could significantly affect health care costs and market functioning, a more in-depth cost and market impact review may be conducted. U.S. Senator Edward Markey emphasized the importance of for-profit companies in the health care system understanding their responsibility to preserve and protect health care access. He announced plans to hold a congressional hearing in Boston to further explore the impact of for-profit companies on health care access.
Senator Elizabeth Warren expressed concerns about Steward’s latest plan and highlighted the importance of ensuring that the company’s hospitals in Massachusetts remain operational. She criticized the company’s executives for their past actions and called for accountability in their decisions. Warren emphasized the need to prevent Steward from profiteering at the expense of Massachusetts residents once again. The sale of Steward’s physician network to Optum has raised questions about the future of the Massachusetts health care system, with Warren urging for transparency and oversight to protect patients and communities.
