UnitedHealth to buy LHC Group, a home health firm for $5.4 billion
UnitedHealth estimated the deal's total worth to be $6 billion, plus the debt. The transaction is expected to end in the second half of 2022, according to the business.
By ET Spotlight Special |
Reuters
UnitedHealth Group Inc. has offered to buy LHC Group Inc. for around $5.4 billion. UnitedHealth's Optum health-services business is set to launch the deal on Tuesday that will add one of the country's major home-health companies to its portfolio. This includes doctor groups, hospitals, healthcare facilities and some home-based treatments.
UnitedHealth would spend around $170 per share for LHC. It had $2.2 billion in revenue last year and offers hospice, long-term care facilities, and other home-based services in addition to home health. That would be an 8.1 per cent premium over Monday's closing stock price.
UnitedHealth estimated the deal's total worth to be $6 billion, plus the debt. The transaction is expected to end in the second half of 2022, according to the business.
Home-health companies give medical care to the aged and others in their homes.
Insurance companies, like UnitedHealthcare, the country's largest, want to promote home health as a less expensive option for skilled nursing facilities and a tool for reducing hospital stays, particularly among the Medicare population. This is a profitable key growth driver for the business. Under the national program, controlled businesses market privatized Medicare Advantage plans.
Humana Inc., UnitedHealthcare's main competitor in the Medicare market, finalised its acquisition of Kindred at Home last year. They paid $5.7 billion for the remaining 60% of the firm. Humana claims to be the nation's largest home-health service.
The latest deal comes as UnitedHealth is being sued by the Justice Department for antitrust violations in connection with a prior takeover of health-tech business Change Healthcare Inc. In that case, antitrust regulators argued that UnitedHealth was in danger of gaining too much control over healthcare data. It may utilise its new asset to assist its insurance unit to compete.
UnitedHealth has claimed that the change arrangement will lower expenses and also enhance customer service.
UnitedHealth would spend around $170 per share for LHC. It had $2.2 billion in revenue last year and offers hospice, long-term care facilities, and other home-based services in addition to home health. That would be an 8.1 per cent premium over Monday's closing stock price.
UnitedHealth estimated the deal's total worth to be $6 billion, plus the debt. The transaction is expected to end in the second half of 2022, according to the business.
Home-health companies give medical care to the aged and others in their homes.
Insurance companies, like UnitedHealthcare, the country's largest, want to promote home health as a less expensive option for skilled nursing facilities and a tool for reducing hospital stays, particularly among the Medicare population. This is a profitable key growth driver for the business. Under the national program, controlled businesses market privatized Medicare Advantage plans.
Humana Inc., UnitedHealthcare's main competitor in the Medicare market, finalised its acquisition of Kindred at Home last year. They paid $5.7 billion for the remaining 60% of the firm. Humana claims to be the nation's largest home-health service.
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The latest deal comes as UnitedHealth is being sued by the Justice Department for antitrust violations in connection with a prior takeover of health-tech business Change Healthcare Inc. In that case, antitrust regulators argued that UnitedHealth was in danger of gaining too much control over healthcare data. It may utilise its new asset to assist its insurance unit to compete.
UnitedHealth has claimed that the change arrangement will lower expenses and also enhance customer service.
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