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ibusinesslines.com October 19, 2018


UnitedHealth buying DaVita group, including 9 local offices

06 December 2017, 07:24 | Kelvin Horton

UnitedHealth buying DaVita group, including 9 local offices

UnitedHealth buying DaVita group, including 9 local offices

The largest USA health insurer UnitedHealth Group Inc will buy DaVita Inc's primary and urgent care services for $4.9 billion in its second acquisition this year to expand its fast-growing medical group, it said on Wednesday. That deal stands in contrast to the UnitedHealth mix, which involves a PBM in addition to health coverage and, now increasingly, physicians.

DaVita Medical Group operating around 300 clinics and half a dozen outpatient surgical centers in six states such as Florida, California, Colorado, Washington, Nevada and New Mexico.

The insurer will acquire almost 300 clinics that serve about 1.7 million patients, as well as 35 urgent-care centers and six surgery centers.

Optum includes MedExpress urgent care centers, surgical centers from its $2.3 billion March acquisition of Surgical Care Affiliates, pharmacy benefit management and data services as well as a bank.

Reuters reported last month that DaVita was exploring a sale of its medical unit.


Executives at Optum added that their ability to leverage analytics and health information technology will allow both organizations to deliver the best possible care.

The acquisition of DaVita would expand that reach considerably. (DVA - Free Report) for almost $5 billion.

But the company has struggled with the physician operation. Its shares are up 36.48% this year, while DaVita is higher by just 0.74%. At the same time, DaVita has been under pressure in its main business because of scrutiny on the relationship of it and other kidney-care providers to a charity, American Kidney Fund, that has helped patients pay for health coverage.

And, the deal is expected to close in 2018, but is subject to regulatory approvals.

DaVita plans to use the funds from the deal to settle financial matters including stock repurchases from shareholders and paying off corporate debts.



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