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Steward Health Care, the hospital operator grappling with financial issues under Medical Properties Trust’s (NYSE:MPW) portfolio, struck a deal to offload its physician network to UnitedHealth’s (NYSE:UNH) Optum Care arm, according to a media report dated Wednesday.
The proposed sale of the managed care business, called Stewardship Health, aligns with Steward’s efforts to strengthen its national network of 33 hospitals following financial setbacks last year, which resulted in overdue bills and rents.
The move would be a “positive step to help the health system resolve its immediate financial issues,” RBC Capital Markets analyst Michael Carroll wrote in a note to clients.
Earlier this year, Medical Properties Trust (MPW) said proceeds from the aforementioned sale would enable Steward to repay all outstanding obligations to MPW.
Collaborative Care Holdings, a subsidiary of UnitedHealth’s (UNH) Optum, disclosed the pending sale in a notice filed on Tuesday with the Massachusetts Health Policy Commission, The Boston Globe reported. The document did not include a price tag.
The HPC will have a 30-day window following the receipt of the necessary information to assess the deal’s impacts, the article said, although the commission could conduct a more thorough review.
Despite a positive development, RBC’s Carroll left his sentiment indicator as neutral, given several unknowns in the transaction, “such as price, timing, and the likelihood the deal will receive the necessary regulatory approvals.”
MPW ascending 3.8% minutes after the opening bell.