Insurer UnitedHealth has agreed to acquire DaVita Medical Group, the physician network of medical services company DaVita, for $4.9 billion in cash. The acquired business will combine with OptumCare, a physician-led health services subsidiary of UnitedHealth.
The $4.9 billion price tag looks slight compared with the $77 billion merger announced earlier this week between CVS and Aetna. But both deals follow the same logic of integrating health insurance offerings with a network of medical services.
DaVita Medical operates 300 clinics across six US states, providing primary and urgent care services to some 1.7 million patients per year. UnitedHealth, meanwhile, reportedly owns 250 MedExpress urgent care facilities and roughly 200 surgical centers that it gained control of earlier this year with the $2.3 billion acquisition of Surgical Care Affiliates. Joe Mello, DaVita Medical's CEO, will lead the combined company. Stock in DaVita (NYSE: DVA) popped almost 14% Wednesday, giving it a $12.7 billion market cap.