UnitedHealth Group Inc. has ended its bid to acquire Envision Healthcare Corp., Bloomberg News reported, citing "people familiar with the matter."
UnitedHealth's decision comes shortly after Envision filed a lawsuit against the health insurer. Envision in its suit said UnitedHealth stopped agreeing to add new Envision medical practices to its networks and reduced payments to Envision providers.
Envision accused UnitedHealth of trying to cause "significant financial harm" to its business, and asked the court to invalidate the dispute resolution provision that is part of a 2009 agreement. It has also requested damages and other appropriate relief.
Envision subsidiary Sheridan Healthcorp, Inc is also part of the lawsuit.
