Steward Health Care is seeing interest from potential buyers of its 31 hospitals, particularly in Massachusetts and Arizona, and it hopes to complete sales this summer.
The health system, which filed for Chapter 11 bankruptcy protection earlier this month, also is in advanced discussions with UnitedHealth Group's Optum to buy physician network Stewardship Health. Optum, which had been negotiating with Steward before the bankruptcy filing, submitted a "stalking horse" bid. A stalking horse bid is the initial bid on a bankrupt company's assets that helps set the minimum price for other potential buyers.
Related: What Steward Health Care's bankruptcy means for patient care
Steward also is in discussions with "various third parties" for its northern Massachusetts facilities, the health system said in a bankruptcy court filing last week.
Steward has proposed a June 24 deadline for bidding on most of its assets, including all hospitals except those in Florida, and the Stewardship Health physician network. The proposed deadline for the Florida hospitals and any other assets is July 26.
The proposed auction date for most of Steward's assets is June 27, followed by a sale hearing July 2. The proposed auction date for the Florida hospitals is July 30 with a sale hearing Aug. 5, according to the filing.
For-profit Steward's bankruptcy filing followed months of financial uncertainty and unpaid bills. The company's landlord, Medical Properties Trust, approved $75 million in debtor-in-possession financing to maintain the healthcare operations.
Steward employs about 30,000 people, including 4,500 primary and specialty care physicians, and serves more than 2 million patients across eight states. It operates approximately 400 facilities in addition to the 31 hospitals.
Officials from Massachusetts, where Steward hopes to sell eight hospitals, have criticized Steward for its selling process, citing the adverse effects on already understaffed and under-resourced facilities.
Steward pushed back in Wednesday's filing. "Filing unfounded and unsubstantiated pleadings at a time when a team of experienced and independent professionals and directors have been and are continuing to run a process .... that will benefit all stakeholders, is neither appropriate nor will it be tolerated by the debtors," Steward said.
Arizona Attorney General Kris Mayes announced an investigation May 10 into the circumstances leading to Steward's filing and the state's possible intervention in the bankruptcy process.
Steward owes more than $600 million to its top 30 unsecured creditors, which includes Change Healthcare, UnitedHealth's embattled claims processor that is still working to restore its systems after a Feb. 21 cyberattack.
