What’s going on here?

Steward Health Care’s bankruptcy led to the sale of its physician network to Rural Healthcare Group for $245 million, a move approved by a U.S. bankruptcy court.

What does this mean?

Steward Health Care, currently in bankruptcy, received court approval to sell its extensive physician network to Rural Healthcare Group for $245 million. U.S. Bankruptcy Judge Christopher Lopez said the transaction was the best offer available. This decision follows the collapse of a previous deal with UnitedHealth Group due to Steward’s bankruptcy filing in May. The company is now focusing on selling its other assets, including several hospitals, amid ongoing financial difficulties restructuring efforts.

Why should I care?

For markets: The upheaval in the healthcare system.

The transfer of Steward’s physician network to Rural Healthcare Group is being closely watched by industry observers. Orlando Health Inc.’s $439.4 million offer for three Florida hospitals underscores how much is at stake. Massachusetts’ active role in securing hospital operations during these transitions suggests potential turmoil in the healthcare sector, particularly in investment opportunities related to hospitals and health services.

The overall picture: Control in the spotlight.

Massachusetts officials and U.S. senators have criticized Steward’s long-term lease obligations stemming from past private equity investments that have contributed to its financial distress. Governor Maura Healey’s decisive decision to keep Saint Elizabeth’s Medical Center open underscores the significant public and political interest in maintaining health care. The upcoming U.S. Senate Committee hearing could shed more light on the complexities of health care financing and the impact on public health infrastructure.