Major Acquisition: UnitedHealth Group Purchases Philly’s Largest GI Group, U.S. Digestive Health, Backed by Private Equity

The recent sale of U.S. Digestive Health, the biggest private medical practice for gastrointestinal specialists in Southeastern Pennsylvania, is a significant event. It was sold to a unit of UnitedHealth Group, a major player in the health insurance field. This move is a glimpse into how private equity impacts our healthcare system.

U.S. Digestive Health, which operates 24 surgical centers and employs around 1,250 people, was sold by Amulet Capital Partners after being created through the merger of three physician groups. The sale happened quietly in January, without much public notice. Michael Fenne from the Private Equity Stakeholder Project raised concerns, stating, “The public has a right to know who owns their provider.”

UnitedHealth confirmed U.S. Digestive is now part of SCA Health, which it acquired in 2017. They stated that this acquisition will help them deliver quality care to patients in various communities.

In 2022 alone, U.S. Digestive doctors performed over 46,000 procedures, although the breakdown of how many were colonoscopies was not disclosed.

While the benefits of private equity in healthcare can be debated, it’s crucial to note that UnitedHealth is currently under investigation for its Medicare billing practices, highlighting the complexities within the healthcare investment landscape.

The sale symbolizes a common trend in private equity: firms usually aim to increase value quickly and then exit within seven years. Although Amulet held onto U.S. Digestive for slightly over five years, it’s unclear how much profit they made.

This shift may affect other physician groups in the region, many of which are still under private equity ownership. For instance, Axia Women’s Health and Premier Orthopaedics are examples of practices that have also been acquired by private equity firms.

Understanding these changes is important as they can shape the future of healthcare access and the quality of services provided to patients. Keeping an eye on how such ownership changes unfold can help patients and communities navigate their healthcare choices more effectively.



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