In the wake of Steward Health Care's bankruptcy filing in a Texas court on May 6, 2024, and the subsequent announcement of its intention to auction four Arizona hospitals, Attorney General Kris Mayes has declared her intention to launch an investigation into the circumstances that led to the healthcare provider's financial downfall. She is also contemplating intervening in the bankruptcy proceedings due to potential adverse impacts on Arizona patients, healthcare workers, providers, and vendors.
Attorney General Mayes voiced her concerns stating, “Arizonans deserve to know more about the circumstances that led to Steward’s bankruptcy filing. I am deeply concerned about the potential impact this could have on Arizona patients and medical providers.” She further pledged her commitment towards ensuring that no Arizonan is adversely affected by this bankruptcy and vowed to fight for these hospitals' uninterrupted operation without any service degradation.
Steward Health Care announced its plan to sell all of its 31 hospitals across the country. The proposed auction date for Steward’s Arizona-based hospitals is June 28, 2024. The facilities under consideration include Florence Hospital in Florence, Mountain Vista Medical Center in Mesa, St. Luke’s Behavioral Health Center in Phoenix, and Tempe St. Luke’s Hospital in Tempe.
Besides these four hospitals, Steward also operates numerous medical practices throughout Arizona. In March, it had revealed plans to sell its physician group to Optum, a subsidiary of UnitedHealth Group. However, with the deal left incomplete before the bankruptcy filing, it remains unclear what course of action Steward intends for its provider groups or other non-hospital assets.
As part of her intervention efforts, Attorney General Mayes will strive to maintain patient health information confidentiality and employee records while advocating for employees and vendors' fair compensation. She will also resist attempts by prospective buyers exploiting Steward’s bankruptcy situation to acquire hospitals or medical practices if such acquisitions would otherwise be restricted due to antitrust laws.