FTC gives the OK for UnitedHealth’s acquisition of DaVita Medical Group
by Tina Reed |
“We are excited to take this important step in building a next-generation comprehensive, coordinated health care organization. Together we will improve patient health and experiences while lowering costs across the continuum of care—including primary, specialty, urgent and surgical care,” said Andrew Witty, CEO of Optum, in a statement.
It was first announced in 2017 that Optum would acquire DaVita’s medical group, one of the nation’s biggest, for $4.9 billion in cash. The company said DaVita Medical Group will join Optum’s physician-led primary, specialty, in-home, urgent and surgery care delivery services business.
DaVita’s medical care group also agreed to pay $270 million to resolve claims against that its medical group provided inaccurate information that caused Medicare Advantage plans to receive inflated Medicare payments.
They said the funds would be paid out of escrow funds it required HealthCare Partners’ former owners to set aside when it acquired the group. According to the Department of Justice, DaVita voluntarily disclosed problematic practices of HealthCare Partners after it discovered those practices caused its Medicare Advantage organizations to submit incorrect diagnostic codes to the Centers for Medicare & Medicaid Services and obtain inflated payments.
In December, it was revealed the price for the medical group dropped the price to $4.3 billion from $4.9 billion in the deal because of underlying business performance as well as an effort to speed up the FTC approval. In November, California regulators gave their blessing to the transaction