Here's an overview of the market conditions that led to the demise of the managed care industry's largest proposed merger between United Healthcare and Humana:
- United projected $900 million in restructuring charges over the next few years.
- Medicare accounts for $120 million of the charges. United has been earning a profit in one-third of the markets in which it contracts.
- United said it lost $565 million in the second quarter, its stock plunge caused the value of the deal to drop to $3.1 billion from its original $5.5 billion price tag.
Source: HPRMN