UnitedHealth Group explores acquisition of Surgery Partners amidst antitrust scrutiny

Editor's Note

UnitedHealth Group (UHG) is in early talks to potentially acquire Surgery Partners, the third-largest operator of ambulatory surgical centers (ASCs) in the US, according to Bloomberg, Healthcare Finance August 26 reports. Surgery Partners has also attracted interest from private equity firms, including TPG Inc. While no deal is certain, news of the negotiations boosted Surgery Partners' stock by 18%. The company’s estimated value ranges between $3.6 billion and $4.3 billion.

Surgery Partners' largest shareholder is Bain Capital, which holds a 39% stake. If the acquisition goes through, it would expand UHG subsidiary Optum’s portfolio, which already includes SCA Health, the country's second-largest ASC operator, acquired for $2.3 billion in 2017.

This potential deal comes amidst a broader landscape of healthcare mergers and acquisitions. In July, Optum withdrew from a deal to purchase the Steward Health Care physician group due to a complex review process by the Department of Justice (DOJ).

The DOJ is also conducting an antitrust investigation into UHG, focusing on Optum's acquisitions of physician groups and their impact on competition. Questions have been raised about whether UHG's ownership of providers might create challenges for rival health insurers.

The outcome of UHG's bid for Surgery Partners remains uncertain, as does the potential regulatory scrutiny such a deal might face given the current antitrust environment.