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HEALTHCARE
NEWS
4 Optum deals so far this year
By Paige Haeffele
U
nitedHealth Group's fastest-
growing subsidiary, Optum,
has made waves within the
healthcare industry through its big-
budget acquisitions over the past
year. Should all of its in-process deals
go through, the company will shell
out over $7.6 billion for acquisitions,
expecting to continue its revenue
growth into the remainder of the year.
1. In March, Optum struck a deal to ac-
quire home healthcare business LHC
Group for $5.4 billion. LHC Group of-
fers in-home health and hospice care
from 964 locations in 37 states. The
deal is expected to close later this
year, with Optum set to pay $170 in
cash for each share of the stock.
Cost of acquisition: $5.4 billion
2. Near the end of March, Optum
acquired Florida-based outpatient
mental health provider Refresh Men-
tal Health, which has more than 300
outpatient sites across 37 states. Re-
fresh Mental Health was bought by
Kelso & Co. in December 2020 for
about $700 million. Though financial
terms of the transaction haven't been
officially disclosed, Behavioral Health
Business reported April 14 that sourc-
es said the purchase price was over
$1 billion.
On June 3, Becker's reached out to
Optum for comment and will update
the report as more information be-
comes available.
Rumored cost of acquisition: $1
billion
3. In early April, Optum finalized a deal
to acquire Houston-based Kelsey-
Seybold Clinic, Axios reported April
4. Kelsey-Seybold is a group prac-
tice offering treatment in 55 medical
specialties across 24 locations in the
Houston area and employs more than
500 physicians and allied health pro-
fessionals. In October 2019, Kelsey-
Seybold was estimated to be worth
more than $1 billion, BuyoutInsider
reported.
Estimated practice value: $1 billion
4. In late April, Optum was cleared to
purchase Atrius Health, a Massachu-
setts physician organization with 30
practice locations and 645 physicians
and primary care providers. Optum
originally offered $73 million for the
physician organization, but upped
the price 223 percent so Atrius could
continue its charitable mission after
the deal closes, bringing the invest-
ment to $236 million.
Cost of acquisition: $236 million
UnitedHealth Group's first-quarter re-
ports show that Optum's first-quarter
revenues totalled $43.3 billion, an
18.9 percent increase compared to
the same period in 2021. n
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