The Federal Trade Commission says DaVita (NYSE:DVA) and UnitedHealth Group (NYSE:UNH) have agreed to a settlement to resolve concerns over UnitedHealth’s proposed $4.3B acquisition of DaVita Medical Group.
No later than 40 days after the acquisition closes, UnitedHealth will divest DMG’s healthcare provider organization in the Las Vegas area to Utah-based Intermountain Healthcare.
It will also be required to provide transition assistance to Intermountain, including transferring confidential business information and giving Intermountain the opportunity to interview and hire employees in key roles.
The FTC’s complaint alleged that the deal would reduce competition in the markets for MCPO services sold to Medicare Advantage insurers, as well as Medicare Advantage plans sold to members.
DaVita closed the day up 3.1%; UnitedHealth up 1.8%.
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