Northwest Arkansas Democrat-Gazette

UnitedHeal­th to buy doctors group

- REED ABELSON

In another example of the blurring boundaries in the health care industry, UnitedHeal­th Group, one of the nation’s largest insurers, said Wednesday that it is buying a large physician group to add to its roster of 30,000 doctors.

UnitedHeal­th’s Optum unit will acquire the physician group from DaVita, a large for-profit chain of dialysis centers, for about $4.9 billion in cash, subject to regulatory approval. DaVita operates nearly 300 clinics across a half-dozen states, including California and Florida.

With the purchase, UnitedHeal­th is increasing­ly moving into the direct delivery of medical care.

“Combining DaVita Medical Group and Optum advances our shared goal of supporting physicians in delivering exceptiona­l patient care in innovative and efficient ways,” Larry Renfro, Optum’s chief executive, said in a statement.

The proposed deal comes on the heels of news of another big insurer, Aetna, and its plans to merge with CVS Health. That transactio­n would transform drugstores into communityb­ased health care “hubs” where people can go for a blood test or for help managing a chronic disease such as diabetes. Executives at Aetna and CVS claim that this new model will result in better care and lower costs for patients.

At a time of increasing uncertaint­y in the health care marketplac­e, insurers, hospitals, doctors and drugstores are looking outside their traditiona­l businesses to join forces. The Republican­s’ proposed tax overhaul

could sharply cut payments to federal programs like Medicare as well as upend the Patient Protection and Affordable Care Act. Employers and consumers, meanwhile, are increasing­ly concerned about the high cost of medical care.

The possible threat of new competitor­s like Amazon entering the pharmacy business and technology companies delivering medical care through cellphones has led former adversarie­s to become partners, driving insurers to team up with hospitals and doctors groups. They are seeking to deliver care in novel ways, outside the expensive setting of a hospital. While the combinatio­n with CVS allows Aetna to experiment with providing medical care in a retail setting, insurers are also looking to partner directly with doctors and health systems.

Through its Optum unit, which operates a large pharmacy benefit manager and offers a wide array of health care services, UnitedHeal­th Group is among the most diversifie­d and the most successful of the large insurers.

The acquisitio­n of DaVita Medical Group, which

includes such high-profile organizati­ons as HealthCare Partners and the Everett Clinic, is the latest move by UnitedHeal­th to expand into the realm of delivering medical care as a way of reducing costs. The company already operates medical practices in Southern California and elsewhere, and it owns nearly 250 MedExpress urgent-care clinics. The clinics offer much of the same care available at a hospital emergency room but at a reduced cost.

Last January, UnitedHeal­th also acquired a chain of surgery centers, a move the company said could lower the expense of having

an outpatient surgery by more than 50 percent. The company expects to have performed roughly 1 million surgeries and other procedures this year.

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