DaVita lowers price on medical group by $560 million
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Dialysis provider DaVita has agreed to sell its medical group, DaVita Medical Holdings, to UnitedHealth Group for $560 million less than the previously agreed upon $4.9 billion.
The companies said in a U.S. Securities and Exchange Commission filing they are lowering the price in an effort to expedite the deal's approval from the Federal Trade Commission. The deal, which would result in DaVita Medical Holdings being combined with UnitedHealth's Optum, already got the green light from the California Department of Managed Health Care in November.
Under the new agreement, UnitedHealth Group will buy DaVita's medical group for $4.34 billion. As a result, DaVita said it expects to record a charge from the lower asset value in the fourth quarter of 2018 of $250 million, up from $200 million.
Matt Stearns, an Optum spokesman, said in an email the combination with DaVita Medical Group is an important step in building the nation's first comprehensive, multi-payer primary-care ambulatory care system.
"We are working diligently to close this transaction so that together, we can bring Optum's best practices and data and analytics expertise to our shared vision of making people healthier through outstanding care," he said.
DaVita spokesman Skip Thurman wrote in an email that the company continues to work closely with regulators and Optum to finalize the deal in a timely manner. DaVita Medical Group's physician network treats about 1.7 million patients annually at hundreds of clinics, urgent-care centers and outpatient surgery centers.
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