United Health Group is spending about $ 5.4 billion on in-depth research into home health care with the acquisition of LHC Group
United Health Group is spending about $ 5.4 billion exploring home health care with the acquisition of LHC Group.
The healthcare giant said on Tuesday it would pay $ 170 in cash for each share of LHC’s stock in a deal expected to close later this year.
United Health, which operates the country’s largest health insurer, will join the LHC Group in its Optom Health business, which operates primary care clinics and surgery centers.
The LHC Group provides in-home health and hospice care for patients with trauma, illness or chronic conditions. The Lafayette, Louisiana Company has 964 locations in 37 states.
Health insurers and other financiers have been increasingly focusing on home-based care in recent years, a trend fueled by the COVID-19 epidemic. Advances in technology allow for more care at home, and payers see the practice as a good alternative to being expensive in a hospital or care center if possible.
Last year, United Health rival and Medicare Advantage provider Humana spent $ 5.7 billion to expand its home health business.
Regulators and LHC Group shareholders still need to approve the acquisition.
Shares of LHC Group jumped 7% in premarket trading.