UnitedHealth 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 acquire home healthcare business LHC Group for $5.4 billion. LHC Group offers 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 Mental Health, which has more than 300 outpatient sites across 37 states. Refresh 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 sources 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 becomes 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 practice offering treatment in 55 medical specialties across 24 locations in the Houston area and employs more than 500 physicians and allied health professionals. 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 Massachusetts 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 investment to $236 million.
Cost of acquisition: $236 million
UnitedHealth Group's first-quarter reports show that Optum's first-quarter revenues totalled $43.3 billion, an 18.9 percent increase compared to the same period in 2021.