Financially troubled Steward Health Care has extended the bid deadline of its physician group to July 22 and the auction deadline to July 25, according to a notice obtained by Becker's.
Here are five things to know:
1. The July 15 bankruptcy court filing comes after Optum, parent company of ASC chain SCA Health, backed out of its plans to acquire the 1,700-physician group, Stewardship Health, in June.
2. The Dallas-based health system, which filed for bankruptcy May 6, also pushed back the bid deadline for its hospitals in Arizona to July 29 and the auction deadline to Aug. 2.
3. The court document cites "multiple parties" who are interested in acquiring Stewardship Health, adding that more time is needed to finalize bids.
4. Additionally, the health system is looking to sell 31 hospitals in an effort to offload its $9 billion debt, which includes $290 million in unpaid employee wages and benefits, nearly $1 billion in unpaid bills to suppliers and medical vendors, $1.2 billion in loans,and $6.6 billion in long-term rent obligations.
5. Steward is also under criminal investigation by federal prosecutors concerning allegations of fraud, as well as violations of the Foreign Corrupt Practices Act of 1977.