FTC requires UnitedHealth and DaVita to divest assets as condition in proposed merger

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The Federal Trade Commission (FTC) imposed conditions on United Health Group and DaVita after its investigation resulted to a conclusion that the companies’ proposed merger will harm competition.

The consumer watchdog filed a complaint against UnitedHealth and DaVita alleging that their proposed merger violates the Clayton Act and the FTC Act. The companies agreed to settle to obtain approval to complete their merger.

FTC’s conditions on UnitedHealth and DaVita

Under the settlement agreement, UnitedHealth will divest the Health Care Partners of Nevada (HCPNV) and grant related licenses to Intermountain Healthcare or another buyer approved by the FTC. The company must complete the divestiture within 40 days of closing its proposed acquisition of DaVita.

In addition, the FTC required UnitedHealth and DaVita to:

  • provide transition assistance to Intermountain Healthcare that includes access to and use of intellectual property and business equipment and information;
  • properly transfer all confidential business information;
  • for one year after the divestiture date, provide Intermountain Healthcare with the opportunity to interview and hire employees to fill key information technology and critical services positions in HealthCare Partners of Nevada; and
  • until the divestiture is complete, maintain the assets and marketability of HealthCare Partners of Nevada.

Antitrust concerns regarding the proposed merger

In its complaint, the FTC alleged that UnitedHealth’s proposal to acquire DaVita for $4.3 billion will likely reduce competition in healthcare markets in Clark and Nye Counties, Nevada.