DOJ lifts challenge to Amedisys-UnitedHealth merger as companies agree to divest 164 medical centers
The massive $3.3 billion merger between homecare giant Amedisys and UnitedHealth Group is set to move forward, as the U.S. Department of Justice (DOJ) has ended its legal blockade.
Despite the deal being approved by each company, the DOJ sued to halt the transaction last November, citing antitrust concerns. Specifically, federal regulators were concerned that 20 states would see heavy consolidation in hospice and homecare services should the merger be allowed to go through unabated.
Some of the states—mainly Maryland, New York, New Jersey and Illinois—signed on as coplaintiffs.
At the center of antitrust allegations is UnitedHealth’s ownership of Amedisys’s largest nationwide competitor, LHC Group—which UnitedHealth acquired in 2023 for $5.4 billion. However, the two companies made attempts to assuage the concerns of the DOJ, agreeing to divest 120 of their overlapping medical facilities if the deal is approved. But that was not enough to appease the plaintiffs.
UnitedHealth and Amedisys also attempted to have the lawsuit dismissed, but were ultimately unsuccessful.
Now, the DOJ has filed a settlement agreement with the courts, following additional concessions from the two companies.
Both companies agree to divestitures in 19 states
In a Thursday announcement, the DOJ said UnitedHealth and Amedisys agreed to divest 164 hospice and home healthcare locations—44 more than initially promised. Those clinics are located in 19 of the 20 states that were of greatest concern to regulators.
If divestures fail to pass regulatory approval, UnitedHealth is obligated to sell eight additional facilities, the DOJ said.
“In no sector of our economy is competition more important to Americans’ well-being than healthcare,” Assistant Attorney General Abigail Slater of the DOJ’s Antitrust Division, said in a press release. "This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses."
In total, the sale of the 164 locations accounts for roughly $528 million in annual revenue, the DOJ added.
The settlement agreement is open to public comment for 60 days, as it has yet to be formally finalized. The full announcement from the DOJ is available here.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.