Optum, the parent company of ASC chain SCA Health, announced plans to acquire bankrupt Dallas-based Steward Health Care's physician group, Stewardship Health, in March.
Optum is the country's largest employer of physicians, with 90,000 employed, contracted or aligned.
Here are seven notes on the proposed deal:
1. Optum subsidiary Collaborative Care Holdings filed a notice March 26 with Massachusetts' Health Policy Commission to acquire the physician group, Stewardship Health, for an undisclosed amount.
2. Steward filed for Chapter 11 bankruptcy on May 6 to keep operations running at its existing locations.
3. A letter of intent was executed between Steward and Collaborative Care Holdings, according to bankruptcy court documents filed May 15.
4. In the May 15 filing, Mr. Boynton noted that Medical Properties Trust's financial plan with Steward does not address the Justice Department's review of the proposed sale — adding that the department reserves its right to conduct a full antitrust review.
5. In a May 28 bankruptcy filing, the Justice Department rejected Steward's suggested auction timeline for the sale of 1,700-physician Stewardship Health. Brian Boynton, principal deputy attorney general for the justice department, said the financial deal between Steward and its landlord Medical Properties Trust interferes with the antitrust review of the physician group deal, according to the filing obtained by Becker's.
6. In a June 3 hearing, a bankruptcy judge authorized sale dates for 31 Steward hospitals. During the hearing, Steward attorney Ray Schrock said that while the health system is "very focused on attempting to sign an agreement with United Optum" for the physician group, it is also marketing to other buyers.
"This physician group is very sought after, it's extremely valuable," he said.
7. The sale will have a bid deadline of June 24 and a first sale hearing July 11.