DaVita to Pay $4.42 Billion for HealthCare Partners

DaVita to Pay $4.42 Billion for HealthCare Partners



Billion-Dollar DaVita Deal Highlights Movement Toward Mergers, ACOs

Topics: Delivery of Care, Marketplace, Topics, Health Reform

May 22, 2012

This particular deal, in which DaVita will acquire HealthCare Partners, will enable the dialysis services provider to offer a more integrated group of services that fall under the ACO model that the government is trying to encourage.

Los Angeles Times: HealthCare Partners to Be Bought By DaVita In $4.42 Billion Deal
HealthCare Partners, the Torrance owner of physician groups in Southern California, Nevada and Florida, agreed to be acquired in a $4.42-billion deal by dialysis chain DaVita Inc., as large healthcare companies continue snapping up doctor groups and clinics. … Nationally, much of the merger activity stems from Medicare, which is moving away from fee-for-service payments that encourage volume rather than quality care or efficiency. Instead, Medicare is adopting new payment methods that reward medical providers that keep patients healthy and curb excessive spending. If those so-called accountable-care organizations succeed at managing their pool of patients, Medicare allows them to share in the savings and boost their profits (5/22).

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If KT wanted to encourage savings, he would push Nocturnal, in getting more private insurance clients.