DaVita Medical Group has agreed to sell to UnitedHealth Group and its subsidiary for roughly $560 million less than the previous $4.9 billion acquisition price, the Star Tribune reports.
UnitedHealth's healthcare services arm, Optum, announced a deal last year to purchase DaVita Medical Group for $4.9 billion. However, DaVita's recent regulatory filings with the U.S. Securities and Exchange Commission indicate the organizations lowered the purchase price to about $4.34 billion.
DaVita said in the filing, "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."
The company noted it expects to close the deal during the first quarter of 2019.
"We continue to work closely with regulators and Optum to finalize this transaction in a timely manner," a DaVita spokesperson told the Star Tribune in a Dec. 17 statement.
At the end of 2017, DaVita Medical Group managed 280 medical clinics across six states and employed an estimated 750 primary care physicians, the Star Tribune reports. UnitedHealth Group's Optum division has recently stepped up the pace of its physician group acquisitions and currently owns roughly a dozen large clinics operating across 10 states.
"Our combination with DaVita Medical Group is an important step in building the nation's first comprehensive, multipayer primary and ambulatory care system, focused on delivering high-quality health care and a unique consumer experience. We remain confident in the benefits of this partnership," a UnitedHealth Group spokesperson told the publication in a statement.
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