In an interesting twist to health care consolidation, managed care company UnitedHealth Group Inc., which has major operations in Hartford, plans to buy the operations of Southern California physician group Monarch HealthCare, The Associated Press reports.
Terms of the deal were not disclosed in a report published Thursday by The Wall Street Journal.
UnitedHealth, based in Minnetonka, Minn., is the largest health insurer based on revenue and second only to WellPoint Inc. in enrollment. Monarch, founded in 1994, has more than 2,600 doctors and is the largest association of physicians in private practice in California’s Orange County, according to its website. It offers access to 20 hospitals in the county and more than 30 urgent care centers for afterhours and weekend care.
Bernstein analyst Ana Gupte said in a note that the deal supports her view that managed care companies will vie with hospitals in a “land grab” for doctors.
Last fall, UnitedHealth competitor Humana Inc., based in Louisville, Ky., announced the purchase of Concentra Inc. for about $790 million. Concentra delivers occupational medicine, urgent care, physical therapy and wellness services from more than 300 medical centers in 42 states. It also operates worksite medical facilities.
More recently, Indianapolis-based WellPoint said it completed an acquisition of CareMore Health Group, which provides Medicare Advantage coverage and coordinated care for about 54,000 people in California, Arizona and Nevada. Medicare Advantage plans are privately-run versions of the government’s Medicare program, which provides health coverage for the elderly and disabled.
