Steward Health Care Announces Sale of Stewardship Health to Rural Healthcare Group

Sale of Primary Care Providers business will result in strong patient outcomes and physician enablement

DALLAS--(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).

About Steward Health Care

Over a decade ago, Steward Health Care System emerged as a different kind of health care company designed to usher in a new era of wellness. One that provides our patients better, more proactive care at a sustainable cost, our providers unrivaled coordination of care, and our communities greater prosperity and stability.

As the country’s largest physician-led, minority-owned, integrated health care system, our doctors can be certain that we share their interests and those of their patients. Together we are on a mission to revolutionize the way health care is delivered - creating healthier lives, thriving communities and a better world.

Based in Dallas, Steward currently operates more than 30 hospitals across Arizona, Ohio, Pennsylvania, Arkansas, Florida, Louisiana, Texas, and Massachusetts.

Additional information is available at www.steward.org