Steward to sell doc network to Optum
Steward Health Care is again trying to navigate antitrust scrutiny as it attempts to sell its nationwide physician network to UnitedHealth Group’s Optum Care in a deal submitted to authorities for review this week.
If the proposal—of which no financial details were made public—goes through, Steward doctors in nine states would be managed by Optum, with additional transactions of physical locations a future possibility, according to a CBS report.
Steward has been on rough financial footing, and a potential 2022 acquisition by HCA Healthcare was scuttled by the Federal Trade Commission. Steward is now appealing to the Massachusetts Health Policy Commission (HPC) to approve the latest proposal, though the commission doesn’t have the authority to fully block a transaction, according to the AP. If the HPC finds potential for a negative impact to the state, however, it can refer the matter to the state Attorney General or Department of Public Health.
“[T]his 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 executive director David Seltz says in prepared remarks. “Details of the proposal will be reviewed by the HPC to examine potential impacts on healthcare 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.
Senator Elizabeth Warren (D-MA) expressed skepticism in a public statement following the announcement of the deal, given that Optum is already the largest employer of physicians in the country and the proposed acquisition would only grow its controlling share.
“After years of gross profiteering and mismanagement, Steward’s latest plan raises more serious questions about the future of the Massachusetts health care system. My top priority is ensuring Steward’s Massachusetts hospitals remain open. But Steward executives have no credibility, and I am concerned that this sale will not benefit patients or healthcare workers or guarantee the survival of these facilities,” Warren said. “It would be a terrible mistake for Steward to be allowed to walk away while looting Massachusetts hospitals one more time.”
Warren and fellow Massachusetts senator Ed Markey also sent a letter calling on Steward Health Care executives to testify before congress. Meanwhile, the HPC will have 30 days to issue its findings.
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.