Healthcare Mergers Continue, What This Means For Consumers

Healthcare boundaries have recently begun to blur, starting with CVS and Aetna merging, and continue to blur. Insurance companies, doctors, and hospitals have teamed up in order to cut costs due to the Republicans halting subsidy payments. The halt will cut some federal programs funding. Now, UnitedHealth has plans to buy a large physician group, DaVita. These mergers are an attempt to provide quality care for consumers at affordable lower costs.

Because Republicans halted subsidy payments, companies are beginning to merge.
Because Republicans halted subsidy payments, companies are beginning to merge in order to save and provide quality care.

First CVS and Aetna have plans to create “hubs” for customers to come in and receive care, which will result in better care at a lower cost. Now, joining the bandwagon, UnitedHealth’s Optum unit plans to merge with DaVita to do the same.

The Plan

UnitedHealth Optum manages pharmacy benefits and provides health services. The merge will now add more doctors to UnitedHealth’s existing 30,000 doctors, giving people more variety within their network.

DaVita is a for-profit organization that has chains of dialysis centers. They operate nearly 300 clinics that serve 1.7 million patients across six different states. The states are California, Florida, Colorado, Washington, New Mexico, and Nevada. They will add to UnitedHealth’s 250 Med Express urgent care centers and 200 surgical centers.

“I am so proud of the DaVita Medical Group accomplishments, including our excellent clinical outcomes,” said Kent Thiry, DaVita chairman and CEO. “The combination of DaVita Medical Group and Optum should lead to even higher levels of performance.”

In a statement, Larry C. Renfo, Optum’s chief executive said “Combining DaVita Medical Group and Optum advances our shared goal of supporting physicians in delivering exceptional patient care in innovative and efficient ways.”

The merge between UnitedHealth and DaVita is hopeful for the future of healthcare costs and care.
The merge between UnitedHealth and DaVita is hopeful for the future of healthcare costs and care.

When This Will Happen

The $49 billion merge is expected to close next year.  The goal is to offer clinics that give a lot of the same care an emergency room at much lower rates. They will offer nearly 50 percent cheaper costs for procedures such as outpatient surgery.

Other industries are taking note of UnitedHealth Optum’s move, making it appealing for them to create a design of their own possible merge. As insurance companies, doctors, hospitals, and pharmacies begin to unite, it seems that not only will they benefit, but consumers as well. Healthcare lines continue to blue with these mergers. If all goes accordingly, then consumers will be offered a large range of doctors, and quality care at almost half the costs.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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