DaVita's largest business is kidney care, through the 2,470 outpatient dialysis centers that it runs or provides administrative services to across the US, serving more than 200,000 patients a year.
3 health insurer Aetna Inc agreed to be bought by CVS Health as part of a drive to expand medical services at CVS pharmacies to include more preventative screenings such as for vision and hearing.
The deal with Denver-based DaVita, which mainly provides dialysis services, will combine UnitedHealth's Optum unit with DaVita's physician network business that serves about 1.7 million patients each year through almost 300 clinics.
In a joint news release Wednesday morning, "The combination will improve care quality, cost and patient satisfaction through integrated ambulatory care delivery systems enabled by information technology and supportive clinical services".
Reuters reported last month that DaVita was exploring a sale of its medical unit. Its shares gained less than 1 percent to $220.48 on Wednesday, lifting its market capitalization to more than $212 billion.
DaVita Medical Group runs almost 300 primary and specialty care clinics in several states.
DaVita will continue to operate DaVita kidney care, which owns or helps manage 2,470 outpatient dialysis centers in the United States.
DaVita's unit had $4.1 billion of revenue previous year and an operating loss of $104 million.
DaVita says it plans to focus on its kidney-dialysis business, and use the money for share repurchases, debt payment and general corporate purposes.
"Combining DaVita Medical Group and Optum advances our shared goal of supporting physicians in delivering exceptional patient care in innovative and efficient ways while working with more than 300 health care payers across Optum in ways that better meet the needs of their members", Optum CEO Larry C. Renfro said in a statement.
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