Optum sees path to Mass. market with Reliant purchase
- Worcester, MA-based Reliant Medical Group has taken steps to be acquired by OptumCare, a for-profit health system under the auspices of UnitedHealth-owned Optum, the Boston Business Journal reports.
- Reliant, with 500 physicians in 25 locations throughout the state, would benefit from Optum’s technology and provider network.
- The deal would mark Optum’s entry into the Massachusetts provider space. The medical group currently operates in New York, Connecticut and six other states.
Pressures related to the Affordable Care Act and the shift to value-based payment models have put the squeeze on independent physicians and physician-owned practices, making it more challenging for them to continue on their own. With MACRA looming, practices are scrambling to attain the technology and analytic capabilities that will allow them to report on the required quality metrics.
Reliant officials said in a release that aligning with Optum would allow the group to expand and grow, modernize clinical facilities, attract top medical talent and access advanced data analytics.
Under the deal, Reliant would continue to be locally operated and serve patients under the Reliant Medical Group brand in central and MetroWest Massachusetts, including under the Southboro Medical Group brand, a division of Reliant. No changes in physicians, staffing or management are expected.
Reliant’s board of trustees previously approved the deal, which is subject to Massachusetts regulatory approval. The organizations will now draw up a definitive agreement. Financial terms were not disclosed.
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