Massachusetts AG agrees to $236 million Optum and Atrius Health merger

Optum has obtained approval from the Massachusetts Legal professional Basic’s Workplace to go forward with its deliberate buy of Atrius Well being.

The AG’s workplace has decided that, pending judicial overview by the Massachusetts Supreme Court docket, Atrius Well being has met its necessities underneath Massachusetts charities regulation to promote its enterprise to Optum Well being and switch its charitable belongings to the Atrius Well being Fairness Basis.

Atrius and Optum agreed to extend the acquisition worth for Atrius’ charitable belongings from $73 million to $236 million, which implies extra cash for the Atrius Well being Fairness Basis, based on the AG’s workplace.

“Our workplace fastidiously reviewed this proposed transaction. Whereas it’s going to imply a loss within the charitable sector of an vital healthcare supplier, it’s going to allow Atrius Well being to proceed to serve a whole lot of 1000’s of sufferers, will protect the worth of the charitable belongings and make sure that the Atrius Well being Fairness Basis will use sale proceeds to advertise well being fairness,” a spokesperson for the AG’s workplace stated by assertion.

WHY THIS MATTERS

Atrius Well being was going underneath financially. The acquisition by Optum will let the charitable healthcare group survive.

“After cautious consideration, bearing in mind the recommendation of its senior administration workforce and certified exterior advisors, Atrius’ Board of Trustees has concluded that Atrius can not stay financially viable as a public charity,” the Atrius board has stated. “Accordingly, the board solicited proposals from a variety of healthcare organizations, nearly all of which had been Massachusetts public charities. Based mostly on in depth discussions in regards to the proposals it obtained, the Board concluded that not one of the public charities’ proposals had been possible choices for Atrius.”

The board concluded that the very best and solely viable possibility for long-term survival was an acquisition of Atrius by Collaborative Care Holdings, doing enterprise as Optum Care.

Legal professional Basic Maura Healey stated on April 14 that the transaction was per relevant charities regulation and assented to the aid requested by Atrius.

THE LARGER TREND

The 2 organizations introduced an acquisition settlement in March 2021. 

In June 2021, the Massachusetts Well being Coverage Fee launched a press release on its preliminary overview of the transaction, saying “the proposed Atrius-Optum transaction represents a major change to the Massachusetts healthcare market.”

Atrius is a big, impartial physician-led healthcare group that gives care to greater than 690,000 grownup and pediatric sufferers. It employs 645 physicians and first care suppliers, together with 421 extra clinicians.

Optum Care has an estimated 53,000 docs and 1,450 neighborhood clinics throughout the nation, with a give attention to major care.

The AG’s workplace reviewed this transaction underneath its charities oversight authority. The evaluation included:

• whether or not the group’s board moderately decided that continued operation in its present kind was unimaginable or impracticable.
• whether or not the board exercised due care and prevented conflicts of curiosity in making that willpower.
• whether or not the charitable group will obtain honest market worth for its belongings.
• whether or not the proposed use of proceeds is per charities regulation.

Twitter: @SusanJMorse
Electronic mail the author: SMorse@himss.org