UnitedHealth buying Surgical Care for $2.3 billion

[TexasTowelie]

NEW YORK | UnitedHealth Group is buying surgical center operator Surgical Care Affiliates for about $2.3 billion in a cash-and-stock deal that will add to its outpatient holdings.

The Minnetonka, Minnesota-based health insurer will add Deerfield, Illinois-based Surgical Care to its Optum health services unit, which has 20,000 affiliated physicians and hundreds of facilities. Surgical Care operates 205 surgical facilities and partners with about 3,000 physicians.

The acquisition will be funded with between 51 percent and 80 percent of UnitedHealth stock. The remainder will be in cash.

UnitedHealth Group Inc. is the nation’s largest health insurer. Its core insurance business helped swell profit 23 percent during its third quarter, while prompting a boost in its outlook.

http://onlineathens.com/business/2017-01-09/unitedhealth-buying-surgical-care-23-billion

[Wounded Bear]

1. Just what we need, more consolidation....

I wonder where all of that precious "competition" goes when one corporation owns everything.

[TexasTowelie]

2. They will have no reason to fight for lower costs

and they will just as likely mandate that all surgical procedures occur in one of their facilities in order to be covered by their insurance; otherwise, they will deny paying for the procedure by going out-of-network. Of course, UnitedHealth will claim that they are trying to lower costs by making this acquisition.