The new acquisition of the healthcare giant UnitedHealth
UnitedHealth Group Incorporated (UNH), a healthcare provider, plans to gain a home health care provider. If the regulator approves the deal, then UnitedHealth Group can enter the market, the volume of which can exceed $220 billion in less than 10 years.
The healthcare giant UnitedHealth Group has announced its intention to gain LHC Group, a provider of home health services, for $5.4 billion. LHC has over 900 offices in 37 US states, which creates an extensive network of medical and hospice services at home for people with injuries or chronic diseases. A 2020 study found that medical costs were 52% lower for patients who received inpatient care at home.
By acquiring LHC, UnitedHealth Group can increase the efficiency of its insurance division by offering less expensive home care. According to Medicare and Medicaid, home health care costs totaled $122 billion last year, and they expected that by 2030 they will grow to $226 billion.
If regulators approve the transaction, it will be closed at the end of 2022. However, there is no certainty that they will approve the transaction. Last month, the Justice Department sued UnitedHealth Group to block its acquisition of Change Healthcare, a healthcare technology company.
The regulator claims the deal will give UnitedHealth Group too much control over healthcare data, which could help its insurance division in the fight against competitors. Thus, it is too early to say that the acquisition of LHC is a settled issue. It is necessary to wait for the decision of the regulatory authorities, and only after that it will be possible to assess the prospects of UnitedHealth Group in the home care market.
