Markets Wired

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that UnitedHealth Group’s proposed $4.3 billion acquisition of DaVita Medical Group from DaVita, Inc. will likely harm competition in healthcare markets in Clark and Nye Counties, Nevada.

The order requires United, no later than 40 days after the acquisition is final, to divest DaVita Medical Group’s healthcare provider organization in the Las Vegas Area (known as HealthCare Partners of Nevada) to Intermountain Healthcare, a Utah-based healthcare provider and insurer.

According to the complaint, which was first announced in June 2019, without a remedy in the Las Vegas Area, the proposed acquisition would likely have reduced competition in the markets for managed care provider organization services sold to Medicare Advantage insurers, and Medicare Advantage plans sold to individual Medicare Advantage members. The proposed acquisition also would have positioned UnitedHealth Group to raise the costs of its managed care provider organization services to rival Medicare Advantage insurers, or even withhold such services from these rivals, the complaint alleged.

The Commission vote approving the final order was 4-0-1. Chairman Joseph J. Simons was recused. The staff contact is Joshua Smith, Bureau of Competition, 202-326-3018.

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