News and Analysis
Steward briefs staff that United deal is non-binding
- Max Frumes
•2 min read
Steward Health Care’s Chief Physician Executive Joseph Weinstein told Steward staff today that the recently disclosed agreement to sell Steward’s physician business to Optum is a non-binding letter of intent and has many hurdles to close, according to a recording of the meeting heard by 9fin.
“Today Steward Health Care has entered into a non-binding letter of intent to sell Stewardship Health to Optum, which is a division of UnitedHealthcare,” Weinstein told staff on a companywide internal call.
Steward Health Care struck a deal to offload its physician network to UnitedHealth's Optum Care, with a proposal to close by the end of second quarter of this year, according to a filing dated 26 March.
“This has multiple things that need to occur before it can actually close,” Weinstein continued. “And I want you to be aware of the fact that this will be after what we call due diligence…and [in addition] there is also regulatory approvals that need to occur for this to be completed.
Approvals cited included that of the Federal Trade Commission and multiple states attorneys general as well as The Massachusetts Health Policy Commission and the Commonwealth of Massachusetts.
Representatives for Steward have not responded to requests for comment by press time.
The company said it plans to close by the end of second quarter of this year, according to the filing.
Steward has been working with Lazard, Weil Gotshal, and AlixPartners on its turnaround efforts.
This story was authored by 9fin contributor Teri Buhl.
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