- Combination designed to improve care
quality, cost and patient experience through multiple payer
relationships across physician-led, patient-centered ambulatory
care services
- Applying Optum capabilities enables
DaVita Medical Group community care practices to focus more on
providing high quality care, less on administration
- DaVita Inc. sells DaVita Medical Group
to Optum
Optum, a leading health services company, and DaVita Medical
Group, one of the nation’s leading independent medical groups and a
subsidiary of DaVita Inc. (NYSE: DVA), are combining. The
agreement, entered into on December 5, 2017, calls for Optum to
acquire DaVita Medical Group for approximately $4.9 billion in
cash. The transaction is expected to close in 2018 and is subject
to regulatory approval and other customary closing conditions.
DaVita Medical Group will join with Optum’s physician-led
primary, specialty, in-home, urgent- and surgery-care delivery
services business. The combination will improve care quality, cost
and patient satisfaction through integrated ambulatory care
delivery systems enabled by information technology and supportive
clinical services. Optum’s data, analytics, technologies and
clinical expertise will help DaVita Medical Group physicians
deliver even higher quality care more effectively to the patients
they serve. With medical groups in California, Colorado, Florida,
Nevada, New Mexico and Washington, DaVita Medical Group will expand
the market reach of Optum’s strategic care delivery portfolio,
including Surgical Care Affiliates, MedExpress and HouseCalls.
Patients will further benefit from the sharing of best practices
across both organizations.
“I am so proud of the DaVita Medical Group accomplishments,
including our excellent clinical outcomes as reflected in our star
ratings performance, our strong emphasis on growing physician
leaders, our teammate engagement and advancing the care model,”
said Kent Thiry, chairman and CEO of DaVita Inc. “The combination
of DaVita Medical Group and Optum should lead to even higher levels
of performance.”
“Combining DaVita Medical Group and Optum advances our shared
goal of supporting physicians in delivering exceptional patient
care in innovative and efficient ways while working with more than
300 health care payers across Optum in ways that better meet the
needs of their members,” said Larry C. Renfro, CEO of Optum.
DaVita Medical Group serves approximately 1.7 million patients
per year through nearly 300 medical clinics featuring primary and
specialist care. DaVita Medical Group also operates 35 urgent-care
centers and six outpatient surgery centers.
Following the transaction, DaVita Medical Group will become part
of Optum’s OptumCare division, which today works with more than 80
health plans to serve millions of consumers annually through 30,000
affiliated physicians and hundreds of care facilities. Joe Mello,
chief operating officer of DaVita Medical Group, will continue in a
leadership role in the combined entity, as will the DaVita Medical
Group leadership team.
“The physicians and clinicians of DaVita Medical Group provide
outstanding patient care, and we look forward to supporting their
continued success in serving their patients and communities,” said
Andrew Hayek, CEO of OptumHealth. “We also look forward to working
closely with the leadership team of DaVita Medical Group to combine
our capabilities and, supported by the data analytics and
technology capabilities of Optum, enhancing patient care and the
value we provide to the communities we serve.”
DaVita plans to use the proceeds from the transaction for
significant stock repurchases over the one to two years following
the closing of the transaction, as well as to repay debt and for
general corporate purposes.
“Following this transaction, DaVita will continue to be a leader
in population health management, with a focus on our U.S. and
international kidney care businesses,” Thiry said. “We also expect
to pursue other investments in health care services outside of
kidney care.”
About DaVita Inc.
DaVita Inc., a Fortune 500® company, is the parent company of
DaVita Kidney Care and DaVita Medical Group. DaVita Kidney Care is
a leading provider of kidney care in the United States, delivering
dialysis services to patients with chronic kidney failure and
end-stage renal disease. As of September 30, 2017, DaVita Kidney
Care operated or provided administrative services at 2,470
outpatient dialysis centers located in the United States serving
approximately 218,200 patients. The company also operated 230
outpatient dialysis centers located in 11 countries outside the
United States. DaVita Medical Group manages and operates medical
groups and affiliated physician networks in California, Colorado,
Florida, Nevada, New Mexico, and Washington in its pursuit to
deliver excellent-quality health care in a dignified and
compassionate manner. DaVita Medical Group’s teammates, employed
clinicians and affiliated clinicians provided care for
approximately 1.7 million patients. For more information, please
visit DaVita.com/About.
About Optum
Optum is a leading information and technology-enabled health
services business dedicated to helping make the health system work
better for everyone. With more than 135,000 people worldwide, Optum
delivers intelligent, integrated solutions that help to modernize
the health system and improve overall population health. Optum is
part of UnitedHealth Group (NYSE:UNH). For more information, visit
www.optum.com. UnitedHealth Group (NYSE: UNH) is a diversified
health and well-being company dedicated to helping people live
healthier lives and making health care work better for everyone.
UnitedHealth Group offers a broad spectrum of products and services
through two distinct platforms: UnitedHealthcare, which provides
health care coverage and benefits services; and Optum, which
provides information and technology-enabled health services. For
more information, visit UnitedHealth Group at
www.unitedhealthgroup.com or follow @UnitedHealthGrp on
Twitter.
Cautionary Statement Regarding Forward
Looking Statements
DaVita Inc. Forward Looking Statement
This release contains forward-looking statements within the
meaning of the federal securities laws. All statements that do not
concern historical facts are forward-looking statements and
include, among other things, statements about DaVita’s
expectations, beliefs, intentions and/or strategies for the future,
including use of proceeds from, the benefits of, and the timing of
the closing of the transaction, the future plans of the DaVita
Medical Group leadership team, and how we intend to operate our
business and the types of investments we might pursue after the
transaction closes. Factors which could impact these statements
include the risks and uncertainties associated with the timing and
receipt of regulatory approvals and satisfaction of other closing
conditions, potential disruption in connection with the transaction
making it more difficult to maintain business and operational
relationships, the possibilities that the expected efficiencies,
improvements and other benefits of the transaction will not be
realized, or will not be realized within the expected time period,
our ability to complete dispositions that we announce, or to
successfully expand our operations and services to markets outside
of those in which we currently operate domestically or abroad or to
businesses outside of kidney care, the risk that we might invest
material amounts of capital and incur significant costs in
connection with the growth and development of our international
operations without being able to operate them profitably anytime
soon or at all, uncertainties related to our use of the proceeds
from the transaction, including our ability to repurchase stock, ,
and the risk factors set forth in our filings with the U.S.
Securities and Exchange Commission (“SEC”), including our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2017, and
subsequent reports filed with the SEC. The forward-looking
statements should be considered in light of these risks and
uncertainties. We base our forward-looking statements on
information currently available to us at the time of this release,
and we undertake no obligation to update or revise any
forward-looking statements, whether as a result of changes in
underlying factors, new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171206005268/en/
For Optum:Lauren Mihajlov,
952-205-6312lauren.mihajlov@optum.comorTyler Mason,
424-333-6122tyler.mason@uhg.comorFor
DaVita:Communications:Skip Thurman,
303-876-6610skip.thurman@davita.comorInvestors:Jim Gustafson,
310-536-2585jim.gustafson@davita.com
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