Sale of Primary Care Providers business will result in strong patient outcomes and physician enablement
DALLAS, August 13, 2024--(BUSINESS WIRE)--Steward Health Care ("Steward" or the "Company"), the country’s largest physician-led, minority-owned, integrated health care system, today announced that it has entered into a definitive agreement to sell its Stewardship Health business to Rural Healthcare Group, an affiliate of Kinderhook Industries, LLC. The transaction, which is subject to customary closing conditions, including Bankruptcy Court and regulatory approval, will result in strong patient and physician outcomes. Stewardship Health will continue to serve its loyal patient following in the Commonwealth of Massachusetts under new ownership.
Stewardship is among the largest and best-performing value-based care platforms in the country, combining Steward Health Care Network and the primary care providers of Steward Medical Group, with an integrated Primary Care employed and affiliate provider network composed of ~5,000 employed and affiliated providers across nine States. Stewardship offers value-based care across complex Medicaid and Commercial populations, managing ~400,000 attributed lives.
"As part of the ongoing Chapter 11 proceedings, following a robust and active bidding process, Steward Health Care is pleased to have reached an agreement with Rural Healthcare Group," said Mark Rich, President of Steward Health Care. "Kinderhook has over 20 years of experience investing in mid-sized health care businesses that serve the nations’ most vulnerable populations. Kinderhook’s investments are focused on protecting access to high-quality healthcare in communities that are truly underserved. Rural Healthcare Group is a well-respected group of healthcare professionals that specifically focuses on underserved and underinsured areas. We are confident that Stewardship Health will continue its stellar treatment of the patient population as a result of this transaction."
The transaction is subject to Bankruptcy Court approval, and the transaction will close pending completion of all closing conditions, including regulatory approval.
Steward is represented by Weil, Gotshal & Manges LLP (Restructuring Counsel), McDermott Will & Emery (Regulatory Counsel), Leerink Partners LLC (Healthcare Investment Banker), and AlixPartners, LLP (Financial Advisor).
Rural Healthcare Group is represented by Kirkland & Ellis LLP (Legal Counsel), Bass, Berry & Sims PLC (Regulatory Counsel) and Centerview Partners LLC (Investment Banker).