UnitedHealth Group will pay $500M less for doctor group
In hopes of winning regulatory approval for a deal that was first announced a year ago, the purchase price in UnitedHealth Groups proposed acquisition of DaVita Medical Group has shrunk by more than $500 million, according to a regulatory filing Monday.
The deal, which would significantly expand the push by Minnetonka-based UnitedHealth into the clinic business, is expected to close during the first quarter of 2019, according to a filing from Colorado-based DaVita Inc. that also cites underlying business performance in explaining the new price.
Last year, UnitedHealth Group agreed to purchase DaVita Medical Group for $4.9 billion, but the filing lists a new purchase price of $4.34 billion.
As a result of underlying business performance and in an effort to expedite the process to obtain [Federal Trade Commission] approval of the proposed transaction, the parties agreed to amend the purchase agreement, DaVita said in the regulatory filing. The parties are working together to close the proposed transaction as expeditiously as possible and expect to close in the first quarter of 2019.
This is a developing story. Check back for updates.
Christopher Snowbeck 612-673-4744