Steward has reached a deal to sell its doctors group, Steward Health Care, to a healthcare network affiliated with the private equity firm Kinderhook.
The big picture: Rural Health Group would take over the 5,000-physician group operating in Massachusetts and nine other states.
Driving the news: Kinderhook agreed to pay $245 million under the agreement, per a filing in Houston bankruptcy court.
- Neither Kinderhook nor Steward disclosed the purchase price. They will need regulatory approval before moving forward.
Rural Healthcare Group operates 17 clinics in Tennessee and North Carolina.
- The company said in a press release it will make “significant investments” in the doctors group’s infrastructure.
- RHG said it will “keep healthcare local” so patients can continue seeing providers who know their medical histories.
- The providers will work out of the same facilities, per a Kinderhook spokesperson.
Between the lines: This is Steward’s second time presenting a deal to sell its doctors network. Steward said in late March it had signed a letter of intent to sell the network to Optum, but the deal fell through.