Judge approves UnitedHealth Group’s planned acquisition of Change
UnitedHealth Group can move ahead with its planned $13 billion acquisition of Change Healthcare after a district court shot down the Department of Justice’s attempt to block the transaction.
The merger brings together UnitedHealth Group’s Optum, the technology-enabled health services business of UnitedHealth Group, with Change Healthcare, a healthcare technology company that provides data and analytics-driven solutions. The deal was originally announced in 2021, with the DOJ launching a suit to block the merger in early 2022.
According to the DOJ, the merger could have deep anticompetitive implications in the commercial health markets and technology market that health insurers use to process claims. After the DOJ moved to halt the deal, a federal judge this week ruled in favor of UnitedHealth Group.
“We respectfully disagree with the court’s decision and are reviewing the opinion closely to evaluate next steps,” Assistant Attorney General Jonathan Kanter for the Antitrust Division said in a statement Sept. 20. “Protecting competition and access to affordable healthcare is of the utmost importance to the Antitrust Division and the Department of Justice. We are grateful to the Antitrust Division staff – the attorneys, economists, paralegals, and administrative professionals – who work tirelessly to uphold the value of competition.”
U.S. District Judge Carl Nichols did require UnitedHealth Group to divest ClaimsXten, its claims editing business, as part of his ruling. The business will be sold to TPG Capital for $2.2 billion, which UnitedHealth previously announced.
UnitedHealth Group voiced support for the decision.
“We are pleased with the decision and look forward to combining with Change Healthcare as quickly as possible so that together we can continue our work to make the health system work better for everyone,” the company said in a statement.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."