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 | 0 comments

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 »
FastMed Plus NextCare Equals Urgent Care Giant

FastMed Plus NextCare Equals Urgent Care Giant

by | Dec 17, 2018 12:20 pm | Private Equity, Urgent Care Centers | 0 comments

Consolidation continues in the urgent care services sector, as consumers and healthcare provider organizations look for lower-cost services outside hospital walls. One of the largest deals in this area in 2018 is FastMed Urgent Care’s acquisition of NextCare Holdings Inc., a portfolio company of Alcentra Capital Corp. since 2016. FastMed, the business name for Urgent Care Holdings of America, LLC, is backed by Abry Partners and BlueMountain Capital Management. The company owns and operates 110 clinics in Arizona, North Carolina and Texas. NextCare operates 141  facilities in Arizona, Colorado, Kansas, Missouri, New Mexico, North Carolina, Oklahoma, Texas, Virginia and Wyoming. The... Read More »
The Top 10 Healthcare Deals of 2018. So Far

The Top 10 Healthcare Deals of 2018. So Far

by | Dec 6, 2018 3:43 pm | Healthcare Market Updates | 0 comments

It’s been a busy year for healthcare deal makers, and it’s not over yet. With slightly more than 1,700 deals announced as we went to press, this year’s deal volume has already surpassed 2017’s 1,607 total. Dollar volume is on par with last year’s total of $316.3 billion. At the moment, 2018’s spend stands at $316.9 billion. We will likely see a few more big deals in the remaining weeks of December, just as in December 2017. That was the month that CVS Health (NYSE: CVS) and Aetna (NYSE: AET) announced their $77 billion tie-up, Catholic Health Initiatives and Dignity Health made their mega-merger public, Optum (NYSE: UNH) announced its $4.9 billion acquisition of DaVita Medical Group (NYSE:... 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 | 0 comments

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 »
Avella Specialty Pharmacy Goes to OptumRx

Avella Specialty Pharmacy Goes to OptumRx

by | Oct 18, 2018 2:30 pm | Other Services, Private Equity, Specialty Pharmacies | 0 comments

The auction for Riordan, Lewis & Haden’s portfolio company, Avella Specialty Pharmacy, was well under way back in February, according to industry sources. UnitedHealth Group’s (NYSE: UNH) Optum was reported to be in the lead, and then things went dark. It wasn’t until UnitedHealth Group’s third quarter earnings report was published on October 16 that the story ended. Some time in the third quarter, Optum acquired Avella and tucked it into its OptumRx pharmacy services subsidiary. The price wasn’t disclosed, but PEHub cited two sources saying the deal was valued at around $325 million. That’s pretty low, considering Avella’s previously disclosed... Read More »