UnitedHealth to grow portfolio with $2.3B Surgical Care Affiliates purchase
- UnitedHealth Group has announced plans to purchase Surgical Care Affiliates (SCA) for about $2.3 billion. The health insurance giant expects to close the acquisition during the first half of this year.
- SCA, a chain of ambulatory surgery centers based in Illinois, will become part of UnitedHealth's health services company, Optum, under the deal and create a comprehensive platform of ambulatory care services.
- SCA provides healthcare services to about 1 million patients annually across more than 30 states in the 205 surgical facilities it operates.
By diversifying their portfolio, UnitedHealth can deepen its capabilities for population health management. Providing employers with options for care services has led to positive financial results. Optum drove UnitedHealth's profit growth in April 2016, with a 54% increase in revenues bringing the total to $19.7 billion. Optum's operating profit amounted to 44% of its parent company's business.
“Combining SCA and OptumCare will enable us to continue the transition to high-quality, high-value ambulatory surgical care, partnering with the full range of health systems, medical groups and health plans," Larry C. Renfro, vice chairman of UnitedHealth Group and Optum CEO said in a statement. "We have an incredibly high regard for SCA’s leadership and people, so we look forward to working with them and our payer partners to implement care models that reward independent surgeons and specialists for quality and care efficiency.”
The deal is subject to regulatory approvals and the tender of a majority of SCA’s shares. With a 30% stake in SCA, TPG Capital affiliates have agreed to sell its shares, Reuters reports.
- UnitedHealth Group Surgical Care Affiliates (SCA), OptumCare to Combine
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- Reuters UnitedHealth to buy Surgical Care Affiliates in $2.3 billion deal
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