Justice Department Sues to Block UnitedHealth Group’s $3.3 Billion Purchase of Amedisys
Concerns Over Reduced Competition and Access to Care
The Justice Department is suing to block UnitedHealth Group’s $3.3 billion purchase of Amedisys, citing concerns that the combination would hinder access to home health and hospice services in the U.S. The antitrust complaint, filed in Maryland by the Justice Department and four states’ attorneys general, argues that a potential merger is illegal because the two companies are “such large competitors” already – and the deal would give UnitedHealth too much control in many local markets.
Potential Consequences
The suit alleges that a potential merger would mean less choice for patients looking for affordable care, as well as fewer employment options for nurses seeking competitive pay and benefits. “American healthcare is unwell,” Assistant Attorney General Jonathan Kanter, of the Justice Department’s antitrust division, said in a prepared statement. “Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses.”
UnitedHealth’s Acquisition Strategy
The complaint alleges that UnitedHealth’s plan to acquire Amedisys is the result of “an intentional, sustained strategy of acquiring, rather than beating, competition.” After completing the LHC Group Inc. acquisition, the suit says UnitedHealth prevented Amedisys’ 2023 plans to merge with infusion provider OptionCare by paying a “breakup fee” – and then separately made its own acquisition offer, which Amedisys eventually accepted.
UnitedHealth’s Response
UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services. In a response to the antitrust suit, Optum said the transaction “would be pro-competitive and further innovation.” It said it plans to “vigorously defend [itself] against the DOJ’s overreaching interpretation of the antitrust laws.”
Amedisys’ Commitment to the Deal
Amedisys added that it also remains committed to the deal, which it believes “will create more opportunities to deliver quality, compassionate and value-based care to patients and their families.”
UnitedHealth Group’s Financials
Beyond its Optum unit, UnitedHealth Group also runs one of the nation’s largest health insurers, UnitedHealthcare. The Minnesota-based healthcare giant reported third-quarter net income of $6.06 billion on revenue of $100.82 billion.
States’ Involvement
In addition to Illinois, the states’ attorneys general joining Tuesday’s suit against UnitedHealth and Amedisys are from Maryland, New Jersey, and New York.
Conclusion
The Justice Department’s lawsuit aims to block UnitedHealth Group’s $3.3 billion purchase of Amedisys, citing concerns over reduced competition and access to care. The outcome of the suit will have significant implications for the healthcare industry and the millions of patients who rely on home health and hospice services.
FAQs
Q: Why is the Justice Department suing to block UnitedHealth Group’s purchase of Amedisys?
A: The Justice Department is suing because it believes the combination would hinder access to home health and hospice services in the U.S.
Q: What are the potential consequences of the merger?
A: The merger could mean less choice for patients looking for affordable care, as well as fewer employment options for nurses seeking competitive pay and benefits.
Q: Is UnitedHealth committed to the deal?
A: UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services.
