• Wed. May 29th, 2024

Steward Health Care Network’s Financial Struggles Lead to Sale of Physician Network: Implications for Healthcare Delivery and Costs in Massachusetts

BySamantha Jones

Mar 27, 2024
Struggling Steward Health Care to sell majority of operations to Optum Care

Steward Health Care Network in Boston is facing financial struggles and has accumulated millions of dollars in debt. To address this issue, the hospital group has decided to sell a significant portion of its operations. Steward has filed a notice with the state of Massachusetts, stating that Optum Care, a subsidiary of UnitedHealth Group, will be purchasing its physician network. This means that doctors who are currently employed by Steward in nine different states will soon be working for Optum Care.

The sale does not include the physical hospitals owned by Steward, but there are indications that more transactions may be on the horizon. The Massachusetts Health Policy Commission (HPC), an independent state agency responsible for monitoring healthcare spending, still needs to review the proposed sale. According to HPC Executive Director David Seltz, the sale involves two large medical providers with significant implications for healthcare delivery and costs in Massachusetts. The HPC will examine potential impacts on health care costs, quality, access, and equity before the sale can be completed.

Stewart currently owns ten hospitals in Massachusetts, including Morton Hospital in Taunton, St. Elizabeth’s Medical Center in Brighton, and Good Samaritan Medical Center in Brockton, among others. Mike Toole, the Managing Editor at wbz.com in Boston, has been working in the WBZ-TV newsroom for over 20 years and has previous experience in news and sports production at WABC-TV in New York.

Optum Care is one of the largest providers of healthcare services globally and is owned by UnitedHealth Group Inc., which also owns Minnetonka-based Humana Inc., one of the largest insurance companies worldwide.

The proposed sale between Steward Health Care Network and Optum Care comes as no surprise given Steward’s financial struggles over the years. In recent years, Steward has faced criticism from state regulators over its management practices and financial stability.

Optum Care’s acquisition of Steward’s physician network marks a significant move for both companies as it expands their reach into new markets.

The sale between these two major medical providers is likely to have far-reaching implications for healthcare delivery and costs in Massachusetts. It remains to be seen how this transaction will impact patients who rely on these hospitals for their medical care.

As such, it is crucial that regulatory bodies like the HPC conduct a thorough review of this proposed sale before it can go through. Only then can we determine whether this transaction aligns with our interests as patients and consumers of healthcare services.

In conclusion, Steward Health Care Network’s decision to sell a significant portion of its operations marks a significant turning point for both companies involved. While this move could have far-reaching implications for healthcare delivery and costs in Massachusetts

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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