UnitedHealth to buy DaVita Medical Group for $4.9M, adding 300 clinics and 6 outpatient centers: 5 things to know

UnitedHealth agreed to purchase DaVita Medical Group for $4.9 million, according to CNBC.

Here are five things to know:

1. DaVita Medical Group, a division of DaVita, operates around 300 clinics and six outpatient surgical centers across six states. Post-transaction, the facilities will become part of UnitedHealth's Optum division, which is the umbrella for all non-insurance business, including pharmacy benefits, data analytics, consulting, clinics and surgical centers.

2. The all-cash transaction will expand Optum's outpatient medical care footprint across 60 markets nationally. The network includes 30,000-plus affiliated physicians and 200 outpatient surgery centers.

"We are in the marketplace. We are continuing to look at assets that make sense to us, but we have put together what I'd call solid models in terms of how we view the organizations and how they fit," said Optum CEO Larry Renfro in the report.

3. DMG reported $5 million operating loss in the third quarter of this year, which prompted the sale. The medical groups underperformed compared to DaVita's dialysis division, as medical costs exceeded company expectations.

4. DaVita reported plans to put the proceeds from the sale toward significant stock purchases, and plans to pursue healthcare service investments beyond kidney care.

5. UnitedHealth has focused on growing its outpatient surgery business this year, with Optum acquiring Surgical Care Affiliates earlier this year.

More articles on surgery centers:
12 new ASCs opened or announced in November 2017
32 statistics on ASC FTE staffing by location
10 statistics on OB/GYN net revenue at ASCs

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months