As of May 28, 2024: Important Considerations for Affiliated Physicians Involved with Steward Health Care Bankruptcy
Note: This information is intended to serve as a general resource. No recommendation or endorsement by the MMS for the individual(s) or service(s) listed is expressed or implied. This information does not constitute legal advice. The MMS is not responsible for the recommendations of or the quality of the work provided by any of the parties listed.
It's important to remember that every physician's situation is unique, and the specific steps to take will depend on your contract's terms and circumstances. Seeking legal counsel is helpful to ensure you understand your rights and options throughout the bankruptcy process.
Organizational structures
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Steward Health Care System LLC is the sole member of Steward Operations Holdings LLC which in turn is the sole stakeholder of Stewardship Health.
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Stewardship Health Inc. (SHI) is the sole corporate member of Stewardship Health Medical Group (SHMG), the sole stakeholder of Steward Health Care Network (SHCN), and an equity holder in related business (Stewardship). Stewardship Health
spans nine states and includes primary care, other clinicians, and the physician contracting network.
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Steward Health Medical Group (SHMG) employs primary care and various other clinicians who provide care to patients in clinical practice locations across nine states, including Massachusetts.
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Steward Health Care Network (SHCN) is a contracting organization that enters into various value-based risk-based and other payer contracts on behalf of medical groups and affiliated private practices.
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SHI provides administrative and other non-clinical business support services to SHMG and SHCN.
Affiliated physicians (private physician groups that contract with health plans through Steward and are a member of their MassHealth ACO or their Shared Saving Program, and Independent contractors)
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Monitor Bankruptcy Proceedings: Stay updated on the bankruptcy case through resources like the Kroll claims agent website (see
below). This will help you track important deadlines and developments. Review any notices you receive regarding the bankruptcy, including paying special attention to any deadlines in those notices.
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Review your contract with Steward and understand what your potential liabilities and access to withhold, surplus, etc. are for Commercial, MassHealth, and Shared Savings Program. If you can and are owed withhold, try to calculate that on your
own. Contact your local Steward physician leaders to understand what is owed so you can file a proof of claim, if necessary.
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File a Proof of Claim: Identify what you are owed including all documentation. File a proof of claim by the “Bar Date” ( deadline
date) if Steward owes you money. This applies even if you are an independent contractor, as you are still considered a creditor in the bankruptcy. The Bar Date has not yet been set by the Court, but when it is, you will receive notice of that
deadline as well as the method to file proofs of claim.
Additional considerations for all physicians
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Personal Service Rights: Be aware that you may have the right to object to the assumption (keep employment) and assignment (transfer) of your contract based on the personal service nature of physician agreements. This may be particularly relevant
if you disagree with the proposed buyer or the terms of the assignment. Check your contracts for your rights in these circumstances and consult with legal counsel to determine your ability to object to the assumption of your contract.
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Priority Wage Claim: If you are owed wages for work performed within 180 days of the bankruptcy filing, you may be entitled to a priority wage claim up to $15,150. There is a section of the Proof of Claim form where you can identify the priority
portion of your claim.
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Communication is Key: Remain informed about ongoing activities with Steward, the bankruptcy court, and any potential buyers to ensure that you are aware of developments that may affect your contract or financial interests.
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Shared Savings and Incentive Payments: If you are owed money from shared savings programs, quality incentives, or other performance-based compensation, monitor the bankruptcy proceedings for information on how these payments will be handled. Consult
with legal counsel, if needed, to understand your options for recovering these amounts. You may need to contact local Steward administrators for details to file proof of claim.
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Residency Programs: If you are involved in a residency program, stay informed about the status of your hospital and program. Options could include but are not limited to having the program transferred to a new buyer or reassigned to another sponsoring
institution.
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Health Plan Contracts: Monitor communications from health plans regarding the status of your contracts with Steward and potential changes that may result from the bankruptcy. Note that each health plan may have different terms and conditions in
their contracts which will have implications for your practice.
Resources
Note: This information is intended to serve as a general resource. No recommendation or endorsement by the MMS for the individual(s) or service(s) listed is expressed or implied. This information does not constitute legal advice. The MMS is not responsible
for the recommendations of or the quality of the work provided by any of the parties listed.
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