The Justice Department has filed a lawsuit to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, citing concerns about reduced access to home health and hospice services in the US.
The antitrust complaint asserts that the merger would significantly limit patient choices for affordable care and reduce employment options for nurses seeking competitive pay and benefits.
The big picture: This legal action follows UnitedHealth’s prior acquisition of LHC Group Inc., another home health and hospice provider, consolidating UnitedHealth and Amedisys as two major players in the industry.
- The lawsuit alleges that UnitedHealth’s pursuit of Amedisys is part of a deliberate strategy to acquire, rather than compete with, rivals in the healthcare market. After UnitedHealth acquired LHC Group, they allegedly obstructed Amedisys’ plans to merge with infusion provider OptionCare and subsequently made their own acquisition offer, which Amedisys accepted.
What they’re saying: Assistant Attorney General Jonathan Kanter emphasized the potential negative impact of the acquisition on the home health and hospice care sector.
- “American healthcare is unwell,” Kanter said in a 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 defends the transaction as pro-competitive and a driver of innovation, intending to incorporate Amedisys into its subsidiary, Optum, which provides care, pharmacy, and technology services. Both UnitedHealth and Amedisys remain committed to the deal, touting its potential to improve patient care.
Go deeper: Optum plans to divest some of its care centers to home health provider VitalCaring upon the completion of the acquisition. However, the Justice Department deems this proposal inadequate, asserting that it fails to address the anticompetitive concerns raised by the merger.
- The lawsuit is part of the Biden administration’s aggressive stance on antitrust enforcement and is joined by attorneys general from Maryland, Illinois, New Jersey, and New York. It underscores the administration’s focus on tackling monopolistic practices across various industries.
