DaVita and Optum Make It over the Finish Line

DaVita and Optum Make It over the Finish Line

by | Jun 21, 2019 1:57 pm | Laboratories, MRI & Dialysis, Managed Care, Physician Medical Groups

It’s been a long road for DaVita Inc. (NYSE: DVA) and Optum (NYSE: UNH), but the deal is finally done. On June 19, 2019, the Federal Trade Commission approved Optum’s acquisition of DaVita Medical Group, a $4.9 billion deal when it was announced on December 6, 2017. A year later, the final price was renegotiated down to $4.34 billion. At the time of the initial announcement, Optum agreed to pay cash for the medical group and its network of nearly 300 medical clinics, 35 urgent care centers and six outpatient surgery centers. It operated and managed physician networks in California, Colorado, Florida, Nevada, New Mexico, Pennsylvania and Washington and served approximately 1.7... Read More »
Optum Adds Seattle’s Polyclinic to Its Doctor Roster

Optum Adds Seattle’s Polyclinic to Its Doctor Roster

by | Nov 29, 2018 3:21 pm | Managed Care, Physician Medical Groups

UnitedHealth Group’s (NYSE: UNH) Optum division is a key growth driver for the managed care giant, and M&A is a primary reason. During an investor day meeting in New York on November 27, UNH CEO David Wichmann mentioned the company’s acquisition of The Polyclinic, a 240-doctor group in and around Seattle, Washington. Of course Mr. Wichmann didn’t disclose a price. The 101-year-old practice began looking for a partner after developing a strategic plan that proved too costly even for a group of 240 physicians with 14 locations. The deal with Optum will allow it retain control as a physician-led practice and it will continue to operate under its brand name. The practice... Read More »
The Physician Medical Group Market Ramps Up

The Physician Medical Group Market Ramps Up

by | Jan 15, 2018 12:38 pm | Physician Medical Groups, Private Equity

The Physician Medical Group (PMG) space is consolidating at a torrid pace, and the pace won’t slacken in 2018. Last year, deals for physician practices hit a record in the 21st century with 166 transactions, up 27% over the previous year’s 131 transactions. The momentum is indeed continuing into 2018, with eight more acquisitions announced in the first two weeks. The real record was set in 1998, at 264 deals, but that was a very different time and market. Then, publicly traded management companies were building nationwide platforms of physicians. The market collapsed in 1999, and most of those transactions were unwound and the deal makers vowed, “Never again.” Welcome to 2018.... Read More »
Deal of the Week: UnitedHealth Buys Banmedica SA

Deal of the Week: UnitedHealth Buys Banmedica SA

by | Jan 2, 2018 10:55 am | Managed Care, Other Services

UnitedHealth Group (NYSE: UNH) wasted no time dwelling on its recent acquisition of DaVita Medical Group (NYSE: DVA) for $4.9 billion. On December 22, the healthcare giant announced its acquisition of Chilean healthcare company Banmedica SA (SSE: SGO) for $2.8 billion. Banmeica sells health insurance, operates hospitals and provides other services. It generated approximately $2.1 billion in revenue last year and has operations in Chile, Columbia and Peru. UnitedHealth is looking to grow in emerging and established global healthcare markets where it can leverage its expertise as both an insurer and a provider of medical care. The transaction enables Banmedica to leverage United... Read More »
The Physician Medical Group Market Ramps Up

DaVita Dumps Its Doc Group for $4.9 Billion

by | Dec 8, 2017 9:37 pm | Physician Medical Groups, Private Equity

Kidney care specialist DaVita (NYSE: DVA) made good on its statement that it was exploring strategic alternatives for its DaVita Medical Group (DMG). It found a buyer in UnitedHealth Group’s (NYSE: UNH) Optum, which agreed to pay $4.9 billion for DMG, the highest publicly announced price it has paid for a physician group. In January, Optum announced its take-out of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) for $3.2 billion. The company partners with health plans, medical groups and health systems to develop and optimize surgical centers. At the time of the announcement, it operated 205 surgical facilities, including ambulatory surgery centers and surgical hospitals, in partnership with... Read More »