Update: You can read through here and see where the market value is over $4 billion for the Brazilian HMO. They have a lot of cash on hand due to people here in the US not going to the doctor. The deal was announced today, so is this a predictor of any type of medical tourism push in the future? That’s what I would ponder if down the road something along this line comes about since I don’t know if they get any hospitals in the deal or not. In the US the company has been duking it out with contracts, suing the DOD to get the big west coast Tri-Care contract and pretty much have an all out technology battle going with Blue Cross with a lot of subsidiary actions taking place.
Ok so let’s have a song…”Down in Brazil”…..BD
Amil Participacoes SA (AMIL3), Brazil’s largest managed-health provider, is boosting revenue at five times the pace of its biggest U.S. peers, luring a bid from UnitedHealth Group Inc. (UNH) as growth at home slows.
UnitedHealth, the No. 1 U.S. health insurer, is negotiating to buy all or part of Rio de Janeiro-based Amil, which has a market value of 9.12 billion reais ($4.49 billion), according to people familiar with the matter, who asked not to be named because the talks are private. While Amil is talking to other suitors, UnitedHealth has emerged as the likely buyer and a deal may be announced as soon as this week, they said.
Brazil’s relatively strong private-health sector may be more enticing than other countries where governments place more control on the market, said Sheryl Skolnick, a CRT Capital Group analyst who follows UnitedHealth.
Brazil’s integrated-care model, where insurers also own hospitals and physicians’ practices, is another attraction, said the analyst, who is based in Stamford, Connecticut. Unlike in the U.S., where the two sides are often at odds, a blended system can lead to more coordinated care for patients and better cost controls, she said.