Illusion of choice

6 December 2017 By Robert Cyran Follow @rob_cyran

The U.S. healthcare system is full of intermediaries chasing after a share of the industry’s profit, often by gaming each other. UnitedHealth Group’s $4.9 bln purchase of a physicians group from DaVita is the latest example of trying to cut costs by eliminating links.

This content is for Subscribers only

Context News

UnitedHealth Group said on Dec. 6 it had agreed to buy DaVita's physician-network business for $4.9 billion. The insurer will acquire nearly 300 clinics that serve about 1.7 million patients, as well as 35 urgent-care centers and six surgery centers.

This is UnitedHealth’s second major purchase of the year after buying Surgical Care Affiliates for about $2.3 billion in March.

DaVita’s unit had $4.1 billion of revenue last year and an operating loss of $104 million. DaVita paid $4.4 billion for the physician-network business in 2012, but has sold small chunks and acquired other businesses since.

DaVita says it plans to focus on its kidney-dialysis business, and use the money for share repurchases, debt payment and general corporate purposes.

Context News

This is UnitedHealth’s second major purchase of the year after buying Surgical Care Affiliates for about $2.3 billion in March.

DaVita says it plans to focus on its kidney-dialysis business, and use the money for share repurchases, debt payment and general corporate purposes.

Email a friend

Please complete the form below.

Required fields *