With an all-cash offer on the table, UnitedHealth Group’s Optum and DaVita Medical Group have a proposed deal to join forces.
Optum, which is set to buy DaVita Medical Group (DMG) for $4.9 billion, is the health care services division of UnitedHealth Group. DMG is part of the kidney dialysis firm DaVita Inc. It runs roughly 300 clinics and six outpatient surgical centers in six states across the U.S. Specifically, it serves individuals in California, Colorado, Florida, Nevada, New Mexico, and Washington.
News of the acquisition comes about month after DMG announced a $5 million Q3 operating loss.The purchase would be UnitedHealth Group’s fourth acquisition of the year for Optum — and its biggest one, too. Throughout 2017, the company also struck deals with Surgical Care Affiliates, The Advisory Board Company, and American Health Network.
According to DMG, the merger would not affect Medicare Advantage members. The company also reported they have no plans to change any of their existing health care relationships.
Earlier this week, pharmacy benefits management company CVS announced their plans to merge with Aetna. In western Pennsylvania, UPMC hospitals owns and operates UPMC Health Plan. UPMC also recently completed a purchase of Pinnacle Health in central Pennsylvania. Optum and DMG’s proposed merger continues the trend of vertical integration between health plans and health providers.