Bloomberg: UnitedHealth to acquire Advisory Board's healthcare arm

Minnetonka, Minn.-based UnitedHealth Group plans to acquire The Advisory Board's healthcare division, sources familiar with the matter told Bloomberg.

Here are five things to know.

1. No deal has been inked. A formal announcement may not arrive for a month due to the deal's complexity, the sources said, who asked for anonymity because discussions remain private. 

2. The Advisory Board's shares climbed as much as 14 percent Thursday, reaching their greatest value in two years. As of 3:51 p.m. Thursday, the stock was up 4.8 percent to $54.75, making the Board's market value $2.2 billion.

3. Sales from The Advisory Board's healthcare arm fell 6.6 percent in the company's first quarter, the report states. The business provides consulting and research projects spanning bill collection, patient care improvements and provider strategy.

4. Spokespeople from The Advisory Board and UnitedHealth declined Bloomberg's request for comment.

5. UnitedHealth has recently been growing its technology, consulting and healthcare delivery subsidiary Optum. Deerfield, Ill.-based Surgical Care Affiliates and Optum declared their merger earlier this year.  

More articles on payer issues:
Children's Minnesota out of network with BCBS; 66k policyholders affected by contract dispute 
11 payer-provider contract disputes, resolutions in June
Why Geisinger stays in the ACA exchanges, Aetna and Medtronic team up & more — 13 payer key notes

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months