UnitedHealth Group has dropped its bid to acquire the ambulatory services unit of Envision Healthcare and isn’t interested in participating in any deals to scoop up parts or all of the company, according to Bloomberg.
Bloomberg had previously reported United’s interest in the unit which operates Envision’s surgery centers, accounting for about 16 percent of the company’s revenue last year. Those acquisition discussions may have been a precursor for United partnering with private equity firms to take over all of Envision.
The talk of a deal was dropped after Envision sued the group’s health insurance arm, UnitedHealthcare, on March 12. Envision alleges the insurer “unilaterally” lowered payments and demanded almost $137 million in alleged overpayments be returned, which Envision argues violates a 2009 agreement between the company on resolving disputes.
“Just as United has improperly ignored the prohibition against unilateral adjustments,” the lawsuit said, “United’s attempt to seek overpayments from 2015 through 2016 is expressly prohibited” by their 2009 agreement.
The suit also alleges United failed to honor another portion of the contract after Envision’s 2016 merger with AmSurg. AmSurg had purchased physician management group Sheridan Healthcare in 2013, and once the Amsurg-Envision merger was completed, Sheridan then became a subsidiary of Envision. Under the terms of the 2009 agreement, the suit argues United had to affiliate the newly acquired providers—but instead, Envision alleges United only affiliated some of them.
“United has also failed to timely load various service lines of the providers, including but not limited to trauma, urgent care and hospitalists,” the suit said.
The suit was filed in the U.S. District Court for the Southern District of Florida.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.