Atrius Health had been struggling with finances while approaching 2020, and the outbreak of the Covid-19 pandemic worsened matters. In 2020, this Boston nonprofit reported a small loss despite its good name in providing efficient healthcare services. However, It always remained focused on proper planning to brace for uncertain times. For example, it foresaw the damage the Covid-19 could cause and thus started seeking new credit lines and saving cash.
Seeking solutions to counter challenges
Matters didn’t look quite good before Covid, considering the significant drop in independent doctors’ number. The tie-ups with large health systems became the order of the day, and that was because of the weak negotiating leverage and the astronomical administrative costs.
The Covid-19 outbreak worsened the situation! The service provider had to spend a lot buying the protective gear. Reports also showed a significant decline in inpatient visits, and all these factors hurt revenues.
Big hospitals have always expressed eagerness and openness to buying off physicians’ practices struggling with capital. OptumHealth unit has announced its acquisition of Atrius, which is understandable considering how the service provider has struggled financially.
Absorbing new doctors
UnitedHealthcare has disclosed details about its plans to add more doctors. The healthcare conglomerate says that it might be adding about 10,000 doctors. It hopes that the regulations will uphold the latest deal with Atria, a move that would see Atrius’s 700 doctors become a part of the 10,000 to be absorbed this year.
Atrius announced its decision on Tuesday, but it declined to unveil the terms of the deal. Journalists reached out to UnitedHealth, wanting it to comment on the matter, but their efforts were futile because it declined to comment.
The Massachusetts attorney general spokeswoman says that the regulators received the transaction’s informational notice and will review it soon.
The chief executive officer of OptumHealth, Wyatt Decker, spoke out his mind before the Atrius deal’s pronouncement. This official outlined that Optum had plans underway to expand its existing practices organically. It also added that it was capable and willing to support doctors who wanted to be independent.