Department of Justice Files Lawsuit to Halt UnitedHealth’s $3.3 Billion Purchase of Amedisys
The Department of Justice (DOJ) and four states are opposing the merger, claiming it would detrimentally impact competition in the home health and hospice care sectors as companies defend their decision to merge.
The U.S. Department of Justice (DOJ), in collaboration with attorneys general from Maryland, Illinois, New Jersey, and New York, initiated a lawsuit on Nov. 12 to obstruct UnitedHealth Group’s planned $3.3 billion takeover of Amedisys Inc., a top provider of home health and hospice services.
According to a press release by the DOJ, the government asserts that the merger would eradicate competition between UnitedHealth and Amedisys, potentially harming patients, insurers, and healthcare workers within these vital markets.
“We are challenging this merger because home health and hospice patients and their families facing some of their toughest moments deserve access to affordable, high-quality care options,” stated Attorney General Merrick Garland. “The Justice Department will not hesitate to intervene in illegal consolidation and monopolization in the healthcare industry that could jeopardize vulnerable patients, their families, and healthcare workers.”
The complaint argues that UnitedHealth and Amedisys are fierce competitors in delivering home health and hospice services.
Removing this competition may result in increased prices, decreased care quality, and limited choices for patients reliant on these services, as per the government’s complaint.
The DOJ also contends that the merger would have adverse effects on home health and hospice nurses by diminishing employment competition, potentially impacting wages and working conditions.
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UnitedHealth previously acquired LHC Group Inc. in 2023, a competitor of Amedisys, positioning United as one of the industry’s largest providers, as stated by the DOJ.
The DOJ argues that the proposed merger with Amedisys would further consolidate the market, making it “presumptively illegal” in hundreds of local markets across 23 states and the District of Columbia.
As outlined in the complaint, this could impact an annual volume of commerce exceeding $1.6 billion in home health care and $300 million in hospice care.
To address competitive concerns, UnitedHealth suggested divesting certain facilities to VitalCaring Group.
The DOJ deems this remedy inadequate. According to the release, VitalCaring possesses “lower quality scores than either UnitedHealth or Amedisys” and is facing financial difficulties, including a potential legal judgment approaching half a billion dollars. The DOJ contends that VitalCaring would not effectively retain the competition lost due to the merger.
The lawsuit also seeks civil penalties against Amedisys for allegedly breaching the Hart-Scott-Rodino Antitrust Improvements Act of 1976. According to the release, Amedisys “falsely certif[ied] compliance” with its obligations by failing to produce millions of documents and not disclosing the deletion of other documents during the merger review process.
In response, Optum, a division of UnitedHealth Group, released a statement defending the proposed acquisition.
“The Amedisys combination with Optum would be pro-competitive and foster innovation, resulting in enhanced patient outcomes and increased access to quality care. We will vigorously oppose the DOJ’s overreaching interpretation of the antitrust laws,” the company stated.
A spokesperson for Amedisys conveyed in an email to The Epoch Times, “We stand by the transaction, believing it will generate more opportunities to offer quality, compassionate, and value-based care to patients and their families. We anticipate supporting Optum in presenting our case.”
UnitedHealth Group, headquartered in Minnetonka, Minnesota, provides insurance and healthcare services, reporting $372 billion in revenue in 2023.
Amedisys Inc., headquartered in Baton Rouge, Louisiana, is a provider of home health and hospice services, with nurses and healthcare professionals conducting 10.6 million patient visits in 2023 and earning $2.2 billion in revenue, per the DOJ.
