Arizona AG fears bankruptcy's effect on Mesa, Tempe, Phoenix, Florence hospitals

Steward Health Care’s bankruptcy filing in a Texas last week has spurred Arizona Attorney General Kris Mayes to open an investigation because of potential effects on hospitals in the state.

Mayes said the bankruptcy could have negative effects on Florence Hospital, Mountain Vista Medical Center in Mesa, St. Luke’s Behavioral Health Center in Phoenix and Tempe St. Luke’s Hospital, according to a release from her office.

“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,” Mayes said Friday.

“No matter who ultimately ends up owning and operating these facilities, I am committed to ensuring that no Arizonan is harmed by this bankruptcy, and I will fight to ensure that these hospitals remain open at all times to care for patients without any degradation of service.”

Steward announced it is selling its 31 hospitals nationwide. The auction of Steward’s Arizona-based hospitals is proposed for June 28.

In addition to the four Arizona hospitals, Steward also operates medical practices throughout the state, according to the release.

In March, Steward had announced its plan to sell its physician group to Optum, owned by UnitedHealth Group. Although that deal was not completed before the bankruptcy filing, it is not clear what Steward now intends to do with its provider groups or other non-hospital assets, the release stated

Mayes’s office stated it “will endeavor to protect the confidentiality of patient health information and employee records and advocate for employees and vendors to be paid what they are fairly owed.”

We’d like to invite our readers to submit their civil comments on this issue. Email AZOpinions@iniusa.org .