Steward Health Care to Sell Physician Network

BOSTON (AP) — Steward Health Care has announced a definitive agreement to sell its nationwide physicians network, Stewardship Health, to Rural Healthcare Group, an affiliate of Kinderhook Industries LLC, a private equity firm. This development comes as Steward prepares to present its bankruptcy plan to a judge, which includes the sale of six hospitals in Massachusetts. The Stewardship Health network comprises approximately 5,000 physicians across ten states, serving around 400,000 patients. In a statement, Steward emphasized that the transition will allow Stewardship Health to continue providing care to its patients in Massachusetts under new ownership. The company has been navigating financial difficulties, having filed for bankruptcy on May 6, and subsequently announcing plans to divest its 30 hospitals nationwide. The bankruptcy court has already permitted the closure of two hospitals in Massachusetts, complicating the sale process. Massachusetts officials have expressed concern over the impact of Steward's financial struggles on local healthcare. Attorney General Maura Healey has been actively seeking to preserve the remaining hospitals, which have attracted potential buyers. The state has also pledged approximately $30 million to support the operations of six hospitals during the transition, with these funds being advances on Medicaid payments owed to Steward. Additionally, a U.S. Senate committee has initiated an investigation into Steward's bankruptcy, with plans to subpoena CEO Dr. Ralph de la Torre. Steward currently operates over 30 hospitals across various states, including Arizona, Ohio, and Texas, amidst ongoing challenges in the healthcare landscape.