Bulletin: UnitedHealth Group Inc. Acquires DaVita Medical Group And Equian LLC

NEW YORK (S&P Global Ratings) June 21, 2019--S&P Global Ratings said today that its ratings on UnitedHealth Group Inc. (UNH; A+/Stable/A-1) and its subsidiaries are unaffected by UNH's $4.3 billion acquisition of DaVita Medical Group (DMG), a subsidiary of DaVita Inc., and $3.2 billion acquisition of Equian LLC. We believe both acquisitions are good strategic fits within UNH's rapidly growing health services arm, Optum Inc. DMG will strengthen OptumCare's lead as the largest employer of physicians in the nation. Meanwhile, Equian will add to OptumInsight's existing payment integrity business. We believe integration risks for both acquisitions are manageable. DMG has some client concentrations with Humana (particularly in Florida). However, DMG's current contract with Humana lasts until year-end 2020. We believe

...NEW YORK (S&P Global Ratings) June 21, 2019--S&P Global Ratings said today that its ratings on UnitedHealth Group Inc. (UNH; A+/Stable/A-1) and its subsidiaries are unaffected by UNH's $4.3 billion acquisition of DaVita Medical Group (DMG), a subsidiary of DaVita Inc., and $3.2 billion acquisition of Equian LLC. We believe both acquisitions are good strategic fits within UNH's rapidly growing health services arm, Optum Inc. DMG will strengthen OptumCare's lead as the largest employer of physicians in the nation. Meanwhile, Equian will add to OptumInsight's existing payment integrity business. We believe integration risks for both acquisitions are manageable. DMG has some client concentrations with Humana (particularly in Florida). However, DMG's current contract with Humana lasts until year-end 2020. We believe both sides would have incentive to continue their relationship to avoid potential membership disruption. We believe overall deleveraging risk is also manageable and consistent with...

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