Morning Briefing
Summaries of health policy coverage from major news organizations
UnitedHealth Continues To Shuck Traditional Insurer Model With Surgical Center Deal
UnitedHealth Group, one of the largest and most diversified health insurance companies in the United States, said on Monday that it planned to buy Surgical Care Affiliates, a chain of outpatient surgery centers, for about $2.3 billion. The deal is expected to close in the first half of 2017. (Abelson, 1/9)
The deal, for a mixture of cash and stock, substantially expands the health-care provider footprint of UnitedHealth, which is already the parent of the biggest U.S. health insurer, UnitedHealthcare. The acquisition represents a continued bet on physician services at a time when Republicans’ plans to unwind the Affordable Care Act have created uncertainty for many health-care providers, particularly hospitals, which potentially stand to see a drop-off in insured, paying patients. (Wilde Mathews, 1/9)
In an effort to fulfill its mission to expand its provider footprint to serve about two-thirds of the U.S. population, OptumCare has agreed to acquire Surgical Care Affiliates for about $2.3 billion in a cash and stock deal. Deerfield, Ill.-based SCA owns or operates 190 ambulatory surgery centers and surgical hospitals, most as joint ventures with physicians and health systems. The company says SCA and its affiliates serve approximately 1 million patients per year in more than 30 states. In 2015, it had operating revenue of around $1.1 billion. (1/9)
The U.S.’s biggest health insurer, UnitedHealth Group Inc., will buy Surgical Care Affiliates Inc. for about $2.3 billion, adding an outpatient surgery chain to its growing health care-delivery business. UnitedHealth will pay $57 a share, with with 51 percent to 80 percent of that in stock and the rest in cash, the companies said in a statement. The price is a 17 percent premium to Surgical Care’s closing value Friday. The two companies previously worked together as partners. (Tracer, 1/9)