UnitedHealth’s bid for DaVita Medical gets conditional FTC approval
Category: #health  By Mateen Dalal  Date: 2019-06-21
  • share
  • Twitter
  • Facebook
  • LinkedIn

UnitedHealth’s bid for DaVita Medical gets conditional FTC approval

Within forty days of closure of the acquisition, UnitedHealth Group would divest DaVita Medical Group’s healthcare provider in Las Vegas

UnitedHealth Group has reportedly been granted approval by the Federal Trade Commission for its $4.3 billion acquisition of DaVita Medical Group from DaVita Inc., following a lengthy regulatory procedure due to certain concerns regarding a monopoly in Las Vegas.

Apparently, the deal has had closer inspection from regulators than predicted. FTC's approval, announced on the afternoon of June 19, 2019, came with conditions including divestitures of a Las Vegas health plan network under a consent order with the government and a proposed antitrust settlement.

The FTC has stated that within forty days of closure of the acquisition, UnitedHealth Group would divest DaVita Medical Group’s healthcare provider agency in Las Vegas, called HealthCare Partners of Nevada, to Utah-based healthcare provider Intermountain HealthCare. The FTC seemed worried about a monopoly in Las Vegas, stating that UnitedHealth's Optum providers and operations under the ownership of DaVita would have ruled majority of the market.

According to reports, UnitedHealth’s Optum confirmed the acquisition and announced that DaVita’s high-quality practices in Washington, Florida, California, Colorado and New Mexico are now under OptumCare.

Andrew Witty, CEO, Optum, was reportedly quoted saying that it was an important step in building a next-gen healthcare organization and improving patient healthcare experiences while lowering costs across the entire range of healthcare services, including primary, specialty, urgent, and surgical care.

For the uninitiated, DaVita Medical Group is a subsidiary of DaVita Inc., which is an major provider of dialysis and kidney care services. UnitedHealth will not be possessing DaVita’s kidney care centers. The range of DaVita operations sold to Optum include centers for surgery and urgent care, along with medical clinics governed by both primary care doctors and specialists.  

UnitedHealth Group is a Minnesota-based managed health care brand that offers health care products and insurance services. The brand Optum was established in 2011 in order to affiliate the company's healthcare services business.

 

Source credit: https://www.forbes.com/sites/brucejapsen/2019/06/19/unitedhealth-group-wins-ftc-approval-of-davita-deal/#49797f846e40

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Facebook and Instagram owner Meta to lay off 10,000 jobs to cut costs
Facebook and Instagram owner Meta to lay off 10,000 jobs to cut costs
By Mateen Dalal

Meta, the leading American technology company and the owner of social media platforms Facebook and Instagram, has reportedly announced its plans to lay off around 10,000 employees. Apparently, this is going to be the second round of significant la...

Heathrow to lower passenger charges to feed through to the ticket prices
Heathrow to lower passenger charges to feed through to the ticket prices
By Mateen Dalal

Heathrow Airport, the U.K.’s leading international airport, has reportedly been advised to reduce passenger costs for airlines next year, as they would have an impact on ticket pricing. The Civil Aviation Authority (CAA) determined that lowe...

Amazon signs deal with mortgage lender Better.com to give employee benefits
Amazon signs deal with mortgage lender Better.com to give employee benefits
By Mateen Dalal

Amazon, the U.S.-based e-commerce giant, has reportedly inked a deal with struggling mortgage lender, Better.com to provide better perks to employees. For the unversed, Better.com is introducing Equity Unlocker, a product that enables staff member...