DaVita HealthCare Partners announced Wednesday that it will acquire multispecialty group practice Colorado Springs (Colo.) Health Partners.
The deal, DaVita's first purchase of a practice in its home state of Colorado, will add 100 physicians and 11 locations to the Denver-based company's system of medical groups and physician networks in six states. The deal is expected to close in the fourth quarter of 2014.
Since 2011, CSHP has been certified as a patient-centered medical home by the National Committee for Quality Assurance, and it is one of 74 Colorado medical practices that participate in the Comprehensive Primary Care Initiative established by the CMS in 2012.
Debbie Chandler, CSHP's executive vice president and CEO, will transition to a role of president of the Colorado Springs market for HealthCare Partners.
“We believe that HealthCare Partners values healthcare with physicians leading care coordination and striving toward the appropriate cost at the highest value for patients,” Chandler said. “That's what produces better outcomes and a better value for the patient's dollar.”
HealthCare Partners' expertise, best practices and utilization-management capabilities also made this an attractive deal, Chandler said, noting that the two organizations have been vetting each other for the last two years.
Ken Thiry, co-chairman and CEO of DaVita HealthCare Partners, said CSHP looks forward to expanding its business further within the state.
Robert W. Baird & Co. analyst Whit Mayo said in a note that the deal is relatively small for DaVita.
Second-quarter revenue for the HealthCare Partners division of DaVita increased 16.6% to $887 million and income increased 1.2% to $82 million, from the same period last year.
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