DaVita lowers purchase price of medical group by $560 million

DaVita's headquarters building.
DaVita still hasn't sold its medical group. Photo: RJ Sangosti/The Denver Post via Getty Images

UnitedHealth Group will now pay $4.34 billion for DaVita's medical group, $560 million less than the original purchase price announced last year, DaVita said in a regulatory filing today.

Why it matters: DaVita, a dominant provider of dialysis treatment, lowered the price due in large part to deteriorating financials within the physician business. The Federal Trade Commission has still not signed off on this deal, and DaVita wants to close the deal to offset growing debt, as it prepares for federal changes to commercial insurance for dialysis.

Dialysis industry scores win with California bill veto

A man gets dialysis treatment.
Dialysis companies face political pressure in California. Photo: Brian van der Brug/Los Angeles Times via Getty Images

California Gov. Jerry Brown vetoed a bill late Sunday that would have, among other things, capped payments at lower Medicare rates for dialysis facilities that have financial ties to charities that subsidize patients' commercial insurance.

Why it matters: It's a huge win for dialysis companies like DaVita, and for and charities linked to the dialysis industry — like the American Kidney Fund, which lobbied heavily against the bill. Now the industry will look to defeat a midterm ballot measure that would place a much more restrictive cap on dialysis clinics' profits.