FTC gives conditional OK of UnitedHealth's $4.3B acquisition of DaVita physicians group

The Federal Trade Commission approved UnitedHealth Group's $4.3 billion acquisition of Davita Medical Group, with the condition that UnitedHealth sell one of its newly purchased medical groups in Nevada.

The deal, first announced in late 2017, promised to significantly expand UnitedHealth's network of clinics and urgent care and outpatient centers. The FTC spent more than a year and a half reviewing the deal.

The FTC review found that the acquisition would harm competition in Las Vegas, where UnitedHealth's Optum unit already operates one of the largest medical groups in the U.S.

The proposed settlement, which allows the acquisition to move forward, requires UnitedHealth to sell DaVita's Las Vegas operations to Salt Lake City-based Intermountain Healthcare within 40 days of the acquisition being finalized.

When the deal was initially proposed in December 2017, DaVita Medical Group managed 280 medical clinics in six states, employed more than 750 primary care physicians and contracted with 3,500 associated physician groups. DaVita's Nevada medical group includes 55 clinics that employ 340 physicians, according to The Star Tribune.

All together this means UnitedHealth will add about 225 clinics to its network from California, Colorado, Florida, New Mexico and Washington.

Under the deal, UnitedHealth will combine DaVita Medical Group with its Optum unit, which provides primary and secondary care.

Read the full news release here.

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