The Everett Clinic merged with DaVita in 2016 to finance expansions plans including this clinic in Shoreline, the clinic’s first clinic in King County. Now, DaVita has announced it plans to sell its medical group division including The Everett Clinic to another health care company. (Contributed photo)

The Everett Clinic merged with DaVita in 2016 to finance expansions plans including this clinic in Shoreline, the clinic’s first clinic in King County. Now, DaVita has announced it plans to sell its medical group division including The Everett Clinic to another health care company. (Contributed photo)

DaVita to sell off medical groups including The Everett Clinic

Another round of health care consolidation means The Everett Clinic could soon get new ownership.

EVERETT — Another day, another major health care consolidation.

This one affects a long-time health institution in Snohomish County — The Everett Clinic.

Just last year, DaVita Inc. paid $405 million to purchase the independent medical group that started in Everett and is one of the county’s largest employers.

DaVita announced on Wednesday that it is selling its medical group subsidiary, which includes The Everett Clinic, to UnitedHealth Group’s Optum unit.

The deal for $4.9 billion is expected to close in 2018 and is subject to regulatory approval and other closing conditions.

“I am so proud of the DaVita Medical Group accomplishments, including our excellent clinical outcomes as reflected in our star ratings performance, our strong emphasis on growing physician leaders, our teammate engagement and advancing the care model,” said Kent Thiry, DaVita’s chairman and CEO, in a statement. “The combination of DaVita Medical Group and Optum should lead to even higher levels of performance.”

DaVita Medical Group serves approximately 1.7 million patients per year through nearly 300 medical clinics featuring primary and specialist care. Those clinics are in Washington as well as California, Colorado, Florida, Nevada and New Mexico.

DaVita Medical Group also operates 35 urgent-care centers and six outpatient surgery centers.

UnitedHealth Group is based in Minnesota. Its Optum division aims to use data, analytics, technologies and clinical expertise to help DaVita Medical Group physicians provide better care.

“We also look forward to working closely with the leadership team of DaVita Medical Group to combine our capabilities and, supported by the data analytics and technology capabilities of Optum, enhancing patient care and the value we provide to the communities we serve,” said Andrew Hayek, CEO of Optum, in a statement.

The Everett Clinic was founded in 1924 by four physicians. It grew to include more than 2,000 employees with 315,000 patients in Snohomish and Island counties last year.

The medical group’s leadership sought to merge with DaVita, a Fortune 500 company, to finance an ambitious expansion plan. In the past year, The Everett Clinic has added several clinics including ones in Woodinville and Shoreline, the medical group’s first expansion into King County.

The Everett Clinic retained its name and brand after being sold to DaVita.

DaVita, which operates more than 2,200 kidney care centers across the U.S., plans to use the proceeds from the sale to buy back stock, repay debt and use for general corporate purposes.

“Following this transaction, DaVita will continue to be a leader in population health management, with a focus on our U.S. and international kidney care businesses,” Thiry said. “We also expect to pursue other investments in health care services outside of kidney care.”

Jim Davis: 425-339-3097; jdavis@heraldnet.com; @HBJnews.

Talk to us

More in Herald Business Journal

‘Better with Boeing’ campaign aims to keep 787 assembly here

A new marketing effort hopes to persuade the company to keep Dreamliner work in Everett.

Panel blasts Boeing, FAA for ‘horrific culmination’ of failures

Investigators found that the company had a financial incentive to avoid more pilot training.

Port again wins millions in grant money for mill site revamp

The Port of Everett successfully reapplied for federal funding after losing $15.5 million last year.

Marysville offers another round of CARES Act grants

Funds are available for those who need help paying for housing or business expenses amid COVID-19.

Commentary: The 737 Max debacle won’t be the end of Boeing

The plane may actually be the bright spot in Boeing’s airliners business.

737 Max engineer didn’t know details of flight control system

The program’s leaders only assumed pilots would react differently to the triggering of the MCAS.

Everett company faces $230,000 fine for safety violations

State inspectors allege that Chilos Builders exposed workers to hazards at area construction sites.

Unemployment system overwhelmed by users and new claims

The state Employment Security Department couldn’t process all the new information, leaving users frustrated.

Boeing 737 Max moves another step closer to returning

Test flights were performed from Vancouver to get around coronavirus-related U.S. travel curbs.

Light rail’s Lynnwood Link inches forward, with massive beams

The massive columns and girders that will hold the track are popping up along I-5.

What slowdown? Amazon seeks to hire 33,000 people

It’s the largest number of job openings Amazon has had at one time.

Boeing finds new problem with 787 that will delay deliveries

The company also released data showing the tally of lost 737 Max orders this year is now approaching 1,000.