UnitedHealth building in Minnesota. Photo courtesy of UnitedHealth.
UnitedHealth, the largest healthcare insurance company in the United States, announced Tuesday that it intends to purchase LHC Group, a leader in home healthcare services, for approximately $5.4 billion.
The transaction, in which UnitedHealth said it would pay $170 in cash for each share of LHC stock, is expected to close later this year.
Based in Lafayette, La., and founded in 1994, LHC Group employs 30,000 people in 37 states and the District of Columbia. The deal will combine LHC Group with UnitedHealth’s Optum health services company.
The companies produced a video about the deal as part of the announcement.
«LHC Group’s sophisticated care coordination capabilities and its warm, human touch is so important for home care, and will greatly enhance the reach of Optum’s value-based capabilities along the full continuum of care, including primary care, home and community care, virtual care, behavioral health and ambulatory surgery,» said Dr. Wyatt Decker, the CEO of Optum Health, a subsidiary of UnitedHealth.
LHC Group chairman and CEO Keith G. Myers said in a joint statement with Optum Health that «working together as organizations committed to caring for the most vulnerable in society will help us more effectively and efficiently deliver high quality and increasingly value-based care in the home.
Last month, the U.S. Department of Justice sued UnitedHealth in an antitrust action to block its $13 billion acquisition of Change Healthcare, Inc. The suit was filed in the U.S. District Court for the District of Columbia along with the attorney generals from New York and Minnesota.