Federal Trade Commission and Colorado v. United Health and DaVita Medical Group

Date Filed: June 19, 2019
Status: Decided
District Court: District Court, County of El Paso, State of Colorado Nature of Suit: Antitrust–Merger
Defendant Type: Provider
Plaintiff Type: Federal, State

In December 2017, UnitedHealth Group announced its subsidiary, Optum, would acquire DaVita Medical Group. This would have primarily affected facilities in Nevada and Colorado. The U.S. Federal Trade Commission investigated the merger, with an interest in the Nevada market, but declining to take action in Colorado. The Colorado Attorney General’s Office proceeded on its own, filing a suit on June 19, 2019 claiming the merger was anticompetitive and would prevent other competing health care plans from competing effectively in Colorado Springs. Eventually the merger was approved with conditions in both states. In the Nevada market, the companies reached a settlement with the FTC that would require UnitedHealth Group to divest DaVita’s HealthCare Partners of Nevada to Intermountain Healthcare, a Utah-based healthcare provider and insurer. Separately, Colorado Attorney General Phil Weiser also imposed restrictions on the merger requiring 1) UnitedHealthcare, UnitedHealth’s insurance division, to lift its exclusive contract with Centura Health for at least 3 1/2 years, expanding the network of healthcare providers available to Medicare Advantage plan seniors, and 2) DaVita to extend its agreement with Medicare insurer Humana, UnitedHealthcare’s main competitor in Colorado Springs, through at least 2020.


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