UnitedHealth’s $4.3B Purchase Of Physician Group Approved By FTC With Conditions
The FTC alleged the UnitedHealth-DaVita deal would create a monopoly in the Las Vegas area and that the combination would have resulted in higher health-care costs and weaker competition for on quality, services and other amenities.
The Wall Street Journal:
FTC Approves UnitedHealth’s $4.3 Billion Purchase Of DaVita Physicians Group
Federal regulators approved UnitedHealth Group Inc.’s $4.3 billion purchase of DaVita Inc.’s physician group with the condition that the UnitedHealth UNH 1.83% sell one of its newly purchased health-care provider organizations in Nevada. The Federal Trade Commission said Wednesday UnitedHealth has agreed to divest a primary-care practice in the Las Vegas region known as HealthCare Partners Nevada to Utah-based Intermountain Healthcare. (Thomas, 6/19)
The Star Tribune:
FTC Puts Limit On $4.3 Billion Clinic Deal For UnitedHealth Group
Minnetonka-based UnitedHealth first announced a deal in late 2017 to acquire Colorado-based DaVita Medical Group, an acquisition that promised to significantly expand UnitedHealth’s network of clinics, urgent-care centers and surgery centers. The Federal Trade Commission spent more than a year and a half reviewing the proposal, before announcing a proposed settlement Wednesday that lets the deal move forward in five states. The purchase by UnitedHealth Group of about 225 clinics fits with a broader trend of the nation’s largest health insurers morphing into health care conglomerates that directly provide patient care through pharmacies, clinics and other outlets. (Snowbeck, 6/19)
Modern Healthcare:
UnitedHealth Closes DaVita Medical Group Purchase, With Conditions
The original FTC complaint against the proposed deal said it would result in a near monopoly controlling more than 80% of the market for services delivered by MCPOs to Medicare Advantage insurers. (Bannow, 6/19)
In other news from the health industry —
Modern Healthcare:
Health Systems Eye Commercial Payers For More Downside Risk
Finance executives at hospitals and health systems see the most opportunity to work with commercial insurers to increase downside risk in payment contracts, according to a new survey. The survey, published Wednesday by consultancy Navigant, found 64% of finance leaders said they plan to assume additional risk in contracts with commercial payers in the next one to three years. Medicare and Medicare Advantage were behind with 57% of executives saying they plan to take on more risk in traditional Medicare contracts while only 51% of executives answered that they plan to assume more risk in the Medicare Advantage sector. (Castellucci, 6/19)
Modern Healthcare:
Soon-Shiong Steps Down From ONC Advisory Committee
Dr. Patrick Soon-Shiong, the billionaire physician-entrepreneur at the helm of health technology company NantWorks, on Wednesday said he is resigning from the federal Health Information Technology Advisory Committee. Soon-Shiong said his time has been occupied by developing a cancer vaccine through his biotechnology company Nant, which is under the NantWorks umbrella, and overseeing the Los Angeles Times, which he purchased in 2018. (Cohen, 6/19)
