DOJ sues to block UnitedHealth’s $3.3B acquisition of home health giant
The U.S. Department of Justice (DOJ) has sued to block UnitedHealth Group’s acquisition of the home health company Amedisys, which was to be folded into the insurer’s Optum brand. The transaction was valued at $3.3 billion.
Bloomberg was the first to report the news, citing a source familiar with a meeting between UnitedHealth executives and the DOJ, with the former trying to avoid this exact outcome. According to the report, UnitedHealth offered to sell off more than 100 clinics to address the concerns of regulators, but that gesture failed to persuade them.
Another "last rights" meeting between the DOJ and UnitedHealth was scheduled for this week, in what Bloomberg described as a typical final step to avoid a lawsuit. However, it’s unclear whether that meeting ever took place. The DOJ officially filed to block the acquisition on Nov. 11, citing violations of antitrust law.
The news caused shares of Amedisys to drop more than 5% over the past five days.
The DOJ began investigating the deal in August 2023, two months after it was announced. UnitedHealth had outspent several competitors in a bidding war for Amedisys, with the acquisition closing in June 2023.
It’s worth noting that the DOJ also attempted to block UnitedHealth’s acquisition of Change Healthcare—an effort that failed, as the company now operates under Optum.
The full story from Bloomberg can be found at the link below.
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.