Steward Health Care’s plan to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, has been scrapped, casting doubt on the company’s efforts to stabilize its finances during bankruptcy proceedings.
Steward, based in Dallas and owning over 30 hospitals across eight states including Florida, acknowledged challenges in the federal Department of Justice’s review process for the sale. Despite this setback, Steward remains committed to exploring other potential buyers for its Stewardship Health affiliate, which operates in nine states.
“Stewardship Health remains a valuable asset providing excellent patient care,” the company stated to WBUR-FM in Boston, an NPR affiliate. “There are multiple interested parties, and negotiations are actively ongoing.”
Steward’s financial troubles, prompting its Chapter 11 filing in May with the U.S. Bankruptcy Court for the Southern District of Texas, have drawn significant scrutiny. U.S. Senators Elizabeth Warren and Edward Markey criticized previous private equity owners for allegedly dismantling the company for profit, leaving it financially vulnerable.
In response to concerns raised by congressional members, including Sen. Markey, the U.S. Department of Labor was petitioned to ensure protections for healthcare and retirement benefits of Steward’s hospital workers. Issues such as delayed paychecks in Massachusetts following the bankruptcy filing underscore the anxieties faced by employees reliant on Steward for their livelihood.
In Florida, Steward operates several hospitals, including Coral Gables Hospital, Hialeah Hospital, North Shore Medical Center, Palmetto General Hospital, Florida Medical Center, Melbourne Regional Medical Center, Rockledge Regional Medical Center, and Sebastian River Medical Center. These facilities were acquired from Tenet Healthcare in 2021, adding to Steward’s diverse portfolio across the country, which also includes hospitals in Arizona, Arkansas, Louisiana, Massachusetts, Ohio, Pennsylvania, and Texas.
