UnitedHealth's Optum to buy MedSynergies

(Story updated at 12:12 p.m. ET.)

Optum, a consulting and analytics division of the country's largest health insurer, UnitedHealth Group, has agreed to acquire physician practice consulting firm MedSynergies.

The deal is significant for UnitedHealth as it looks to grow its position as more than just a health insurance company. Optum already serves about 4 out of every 5 U.S. hospitals, providing revenue-cycle management, compliance guidance, data analytics, accountable care modeling and health information technology services. In 2013, Optum's $37 billion in revenue made up about 30% of UnitedHealth's total. The division is on pace for more than $45 billion in revenue this year.

MedSynergies, a privately held company headquartered in Irving, Texas, provides billing, collections, revenue-cycle and other business and consulting services to more than 9,000 physicians and healthcare professionals. It had about $100 million in revenue in 2012, its most recent available data. The company also has several joint ventures with large health systems, including Texas Health Resources, Arlington, and Catholic Health Initiatives, Englewood, Colo.

“This relationship will position Optum to be an even stronger, more valued partner to care providers as they evolve, adapt and pursue new opportunities in a changing environment,” Optum CEO Larry Renfro said in a release. Officials from Optum and MedSynergies weren't available for further comment by deadline.

Financial terms of the transaction were not disclosed. The deal is expected to close this year.

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