Can UnitedHealth Group Inc. stop after swallowing just one more regional managed care company?
Analysts at Moody’s Investors Service are asking that question in the wake of UnitedHealth’s announcement that it has agreed to pay $2.6 billion in cash for Sierra Health Services Inc., Las Vegas.
Mike Mikan, chief financial officer at UnitedHealth, Minnetonka, Minn., says UnitedHealth has reviewed Sierra carefully.
“Sierra is a financially strong organization with very stable operations and systems,” Mikan says.
UnitedHealth and Sierra hope to complete the proposed deal by Dec. 31.
The boards of both companies have given their blessing, but the companies still need approval from Sierra’s stockholders and from state regulators in California, Nevada and Texas.
The deal is getting good reviews from credit analysts at Moody’s, at Standard & Poor’s Ratings Services, New York, and in the Chicago office of Fitch Ratings.