AHA is pushing for a rigorous antitrust review of UnitedHealth’s $ 13 billion purchase price

The country’s powerful portal is urging antitrust scrutiny to review UnitedHealth Group’s bid to acquire Health Insurance Company with positive benefits, arguing that sales could reduce services IT health to providers.

The American Hospital Association urged local police to investigate the $ 13 billion in revenue in a letter sent Wednesday to the Department of Corrections. The AHA said the contract would significantly consolidate health information through surveillance, which was transferred from a switch to a UnitedHealth Optum company, whose parent company is the largest independent provider in the United States, United Healthcare. Decisions about patient care, claim processing and denial could affect United Healthcare in exchange for hospitals, according to the AHA.

UnitedHealth agreed to speak directly about competition issues on Friday, despite a spokesman for Optum saying the two companies are “independent and have other additional powers.”

UnitedHealth of Minnesota reported revenue to Change of $ 13 billion in January. The contract, which is expected to close in the second half of this year, will depend on Optum’s dominance in the data analytics space, experts said, and a positive link between the capabilities of the two companies.

Some street vendors continued to express concern about the merger, pointing to the many markets that UnitedHealth and Change are involved in, making it difficult for regulators to identify which markets are appropriate asking for their review.

Optum, one of the largest IT providers in the United States, generates about half of UnitedHealth’s revenue Its OptumInsight clinical division serves more than 5,000 hospitals and has more than 2,300 affiliates, according to UnitedHealth’s 2019 annual report.

Currently, Change is the largest independent provider of medical information aimed at reimbursing insurance and managing cash flows in the United States. According to the company, more than 5,000 hospitals rely on Change for medical information technology services and connectivity to 2,200 retailers.

Membership of these two parties “will lead to a competitive game between Optum and Change,” the AHA said in its letter to Richard Powers, Deputy Attorney General for the Department of Justice. . The contract will reduce competition between the types of healthcare providers used for insurance coverage and payment, including nursing home, cost savings, income management, and clinical support, it said the AHA.

In addition, the area of change is currently cut off from the competition. Losing a single competitor such as Optum for these services would cost providers more, according to AHA.

The entrance to the hospital, which represents 5,000 hospitals and hundreds of thousands of auxiliary doctors, also declared the main health plans of Optum and Change under one roof, same cost, an antitrust issue.

In areas such as cost adequacy, RCM services, and clinical decision support criteria, Optum will be able to manage its new components for the benefit of United Healthcare, with rejections and barriers to coverage increasing. As a third-party competitor, Change serves as a flagship in this regard, according to AHA.

In addition, after the merger, Optum will be subject to additional fees to competitors and the withholding of information by the Foreign Exchange Complaints Department, which has financial control, to use this information to report the fees. United Healthcare pays and develops a clinical strategy, according to AHA.

This will give United Healthcare more leeway in the negotiations.

“The parties understand that the transaction poses a significant competitive risk as the parties in the settlement agreement are embezzling assets that would cost hundreds of millions of dollars to obtain Justice Department approval,” he said. AHA Managing Director Melinda Reid Hatton.

For its part, Optum seeks to maintain an “information platform” within the company and UnitedHealth claims that its health insurance companies and Optum companies, while strategically located, are separate entities.

In mid-February, UnitedHealth gave antitrust officials ample time to review their plan to capitalize on the change by removing critical documents and firing executives with 30-day oversight to decide whether to investigate tough challenges or let them go. UnitedHealth released its statement and report on February 22nd, calling on the government to resolve to thoroughly review the amending agreement within five days.

The FTC declined to comment on the nature of the review and the Justice Department did not respond to a request for comment at the time of publication.