UnitedHealth Group’s Optum business extends its deadline until April next year to complete its $ 13 billion acquisition of software and data analytics firm Change Healthcare, according to regulatory documents filed Wednesday .
Optum, a fast-growing part of the UnitedHealth Group and the main reason the company will eclipse $ 300 billion in total revenue next year, said Change Healthcare would become part of the OptumInsight business “to provide software and data analytics, technology services, and research, consulting and revenue cycle management offerings to help make healthcare more efficient for everyone.
In a filing with the Securities and Exchange Commission, Change Healthcare said it received a written notice from UnitedHealth on December 9 that the healthcare giant was “exercising its unilateral right to extend the deadline” on the plan and merger agreement until April 5, 2022..
Change Healthcare’s disclosure is in line with what UnitedHealth executives said on their Investor Day earlier this month, saying they were “highly motivated by the positive impact we can have by working with the exceptional team at Change, a team aligned with our mission and values and focused on delivering substantial benefits to the healthcare system.
This is the largest addition to the OptumInsight business since UnitedHealth purchased the advisory board healthcare business in 2017, which includes data analytics, counseling and population health. for $ 1.3 billion.
Announced in January of this year, the acquisition of Change was seen as a step taken by UnitedHealth and Optum to strengthen the company’s efforts to improve health outcomes and the health of the people.
While UnitedHealth continues to be the nation’s largest health insurance company, selling Commercial, Medicaid and Medicare Advantage plans, it is experiencing growth on the health care provider side of the health care system. Optum owns one of the nation’s largest pharmacy benefit managers, OptumRx, as well as an array of healthcare businesses including physician offices, surgery centers, and emergency care sites across the country. .
Speaking at Forbes 10th Annual Healthcare Summit earlier this month, Sir Andrew Witty, who became CEO of UnitedHealth Group in February, said UnitedHealthcare and Optum will become even more collaborative. The health insurer and the health care provider are already working on ways to bundle health benefits and services to sell to employers as well as government clients.