The Justice Department pointed to antitrust scrutiny for why UnitedHealth Group's Optum backed out of its planned acquisition of Dallas-based Steward Health Care's physician group, Stewardship Health.
Steward, which filed for Chapter 11 bankruptcy May 6, is working to offload its 31 hospitals along with Stewardship Health. Steward was also recently hit with a criminal investigation by federal prosecutors at the U.S. Attorney's office in Boston.
"When you ask Americans what keeps them up at night, affording and accessing quality health care is too often at the top of their list," Jonathan Kanter, assistant attorney general of the Justice Department's antitrust division, said in a July 25 statement. "These transactions are among UnitedHealth Group’s latest proposed provider-related acquisitions, and they raised questions about quality of care, cost of care and working conditions for doctors, nurses and other healthcare providers."
Optum backing out of acquiring Stewardship Health comes amid an antitrust investigation the Justice Department opened into UnitedHealth Group in February.
The investigation is partially looking into Optum's physician group acquisition and how the health plan and physician unit ownerships impact competition. Optum employs or is affiliated with more than 90,000 physicians.
Steward did not have an immediate comment for Becker's.
Becker's has also reached out to Optum and will update this story if more information becomes available.