UnitedHealth Buys Another Calif. Doctor Group | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

UnitedHealth Buys Another Calif. Doctor Group

If you live in Southern California, the chances that your doctor's paycheck will be cut by a UnitedHealth Group company are on the rise.

The insurer, the nation's largest by revenue, is acquiring the operations of Monarch HealthCare, a 2,300-physician group, as reported by the Wall Street Journal and also trade magazine Modern Healthcare.

It's the largest and latest in a series of deals that have put the insurer's health services subsidiary, OptumHealth, in more direct control of doctors around the country — a growing trend throughout the industry, as Kaiser Health News reported in July.

The deal marks OptumHealth's third in California's Orange County. The company bought Memorial Healthcare IPA earlier this year, and picked up AppleCare Medical Group's management arm last year. Brian Kane, an OptumHealth spokesman, said the latest transaction is expected to close in the last few months of this year and that current management would stay in place.

In California, insurers and other companies are barred from directly employing doctors. But executives at other physician management groups say the firms can still exert a lot of control. They often handle contracting with health plans, cut checks to doctors in the groups for services they provide, and make decisions about IT investments, among other things.

Insurers, including WellPoint, CIGNA and Humana, are pursuing doctors to take more control over rising health costs, which eat into their bottom line. As WellPoint's chief financial officer, Wayne DeVeydt, told KHN previously, "the only way to stem those costs in the long term is to manage care on the front end."

WellPoint also acquired a business that employs doctors in Orange County, CareMore, a private Medicare plan operator that runs clinics. The Orange County market is attractive, said Ana Gupte, a Sanford C. Berstein financial analyst, because customers there have come to accept managed care systems that limit patients' choice of doctors.

By managing doctors closely, plans may be able to offer lower-cost health care here, and if they succeed, they're likely to export the model to other markets, Gupte said. Consumers who reject limited lists of doctors – 65 percent said they would in a recent national poll – can expect to pay more for broader choice, she said.

Copyright 2011 Kaiser Health News. To see more, visit http://www.kaiserhealthnews.org/.

NPR

Lost — Then Found — Along The Border, Objects Become Art

A photographer's journey along the U.S.-Mexico border turned up dramatic images of lost possessions. Those found items were later made into instruments that sound just like that desolate landscape.
NPR

Need A New Sweet Potato Recipe For Your Thanksgiving Table? Try Gnocchi

Because some cooks like to mix it up for Thanksgiving, we offer a Found Recipe from our archives: Julia Della Croce's purple sweet potato gnocchi.
NPR

Former D.C. Mayor Marion Barry Dies

The fiery Washington, D.C., politician who was famously re-elected after going to jail for crack cocaine possession, has died after months of battling a number of health issues. He was 78.
NPR

Car Ride Service Puts Gender In The Driver's Seat

Car share programs are extremely popular, but so are concerns for safety. NPR's Tess Vigeland talks to Stella Mateo, founder of SheRides, which allows passengers to choose the gender of their driver.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.