[ad_1]
UnitedHealth Group will sell Change Healthcare’s CHNG.O claims editing business for $2.2 billion to private equity firm TPG Capital if regulators approve a proposed merger between the two health companies.
Change Healthcare disclosed the plan in a filing made to the Securities and Exchange Commission Friday. UnitedHealth Group declined to comment and Change Healthcare didn’t immediately respond to an interview request.
The companies announced their $13 billion deal in January 2021 and plan to complete it by year-end. UnitedHealth Group intends to add Change Healthcare to its Optum division.
The proposed merger has attracted criticism from hospital, pharmacy and antitrust advocates, who argue it would create a monopoly for Change Healthcare’s services and raise costs for providers, pharmacists and patients.
The Justice Department sued to block the merger in February, arguing it would give UnitedHealth Group’s insurer arm access to proprietary information on how rival health insurers structure provider contracts and networks. The Justice Department also alleges that, at the time they made their merger agreement, the companies inked a separate contract requiring UnitedHealth Group to immediately increase its purchases of Change Healthcare products by $60 million a year.
UnitedHealth Group disputes these claims. Amid the legal challenge, the companies extended the time line for completing the merger. UnitedHealth Group also pledged to pay Change Healthcare a $650 million breakup fee if a court prevents the merger. The trial is scheduled to begin Aug. 1.
[ad_2]
Source link