Massachusetts supports Steward Health Care's plans to quickly sell its hospitals in the state, but reserves the right to review those sales, Attorney General Andrea Campbell said in a Thursday response to Steward's bankruptcy financing plan.
Thursday's court filing asserts Massachusetts' right to ensure a proposed sale meets the state's criteria for operating healthcare facilities, as well as determine how the sale could impact market competition and costs of care.
Related: Steward Health Care facilities attracting potential buyers
Steward, which operates 31 hospitals, including eight in Massachusetts, is looking to sell all its assets this summer. Massachusetts does not object to Steward's plan to move quickly on sales, Campbell noted in Thursday's filing.
"Massachusetts supports the arrival of a new operator or operators who can provide high-quality patient care to Massachusetts residents. But any new owner must meet the requirements of Massachusetts law to operate hospitals or run a physician services network in the Commonwealth," Campbell said.
Steward had been looking to sell its Massachusetts hospitals for months prior to its filing for Chapter 11 bankruptcy protection in early May.
Steward has seen ample interest in its facilities, according to court documents. More than 50 potential buyers are reviewing one or more acquisition opportunities for facilities in Arizona, Arkansas, Louisiana, Ohio, Pennsylvania, southern Massachusetts and Texas, according to a Monday filing from James Moloney, managing director of Cain Brothers, an investment bank helping with the sales.
Massachusetts' Thursday filing comes two days after the federal Justice Department issued a limited objection to Steward's proposed bankruptcy financing plan, saying the aggressive sales timeline could undermine federal regulators' right to review potential deals, particularly a bid from UnitedHealth Group's Optum to buy physician group Stewardship Health.
Campbell also said Massachusetts reserves the right to review the Optum transaction, in addition to the Justice Department's investigation.
Earlier this week, Chicago-based nonprofit system CommonSpirit Health objected to the proposed financing plan, noting Steward still allegedly owes $17 million for services provided at five Utah hospitals, in addition to other payments.
Also this week, insurer Cigna objected to the bankruptcy plan, arguing it gives Steward the power to assign payer contracts as part of a sale without proper notice, potentially jeopardizing patient care.
Dallas-based Steward employs about 30,000 people, including 4,500 primary and specialty care physicians, across eight states. The health care system's Chapter 11 filing followed months of financial turmoil and unpaid bills. Landlord Medical Properties Trust, which owns 10% of Steward, has approved $75 million in debtor-in-possession financing to fund healthcare operations during the bankruptcy process.
