UnitedHealth Strikes a $2.3 Billion Deal to Buy Surgical Care Affiliates

UnitedHealth, the nation’s largest health insurer, took steps this month to grow even larger. According to a recent article in Outpatient Surgery, the powerhouse announced that it will acquire Surgical Care Affiliates (SCA), one of the nation’s biggest outpatient surgery chains. The $2.3 billion deal will add 205 surgical centers in 30 states to UnitedHealth’s growing network of clinics and physician groups.

UnitedHealth says SCA will become part of its Optum platform, which focuses on providing direct care to patients in more affordable outpatient settings like primary care practices and urgent care centers. SCA says the acquisition will make Optum an even more attractive partner for independent surgeons.   

“The combination of SCA and OptumCare is another step forward toward our vision of becoming the partner of choice for surgeons," said Andrew Hayek, the chairman and CEO of Surgical Care Affiliates.

The unconventional pairing of insurer and provider shows a growing shift that will likely continue to take place in the changing healthcare landscape.

"Historically, the typical buyers of various healthcare providers were either private equity firms or larger strategic companies engaged in the same line of business," said Jerry Sokol, a healthcare transactional attorney and partner at McDermott Will & Emery. "Here, recognizing the trend from inpatient to the outpatient setting in order to provide high-quality care in a lower-cost setting, you have a large payer acquiring an outpatient services provider entity. This is an important transaction and will likely signal a continued trend of strategic integration intended to reduce costs, regardless of what happens with Obamacare."

To learn more, read the entire article.