Justice Department takes legal action to prevent UnitedHealth Group’s $3.3 billion acquisition of Amedisys

The U.S. Justice Department has initiated legal action to prevent UnitedHealth Group’s acquisition of Amedisys, in a deal valued at $3.3 billion. The department has voiced concerns that this merger could limit the availability of home health and hospice services for patients across the country.

The antitrust action was officially filed on Tuesday in a federal court located in Maryland. U.S. Attorney General Merrick Garland emphasized that the government aims to contest the merger because “patients and their families, who are enduring some of life’s toughest challenges, ought to have access to affordable and high-quality care options.”

This lawsuit follows closely after UnitedHealth’s purchase of LHC Group Inc., another competitor in the home health and hospice sector. After this acquisition last year, the Justice Department pointed out that UnitedHealth and Amedisys have risen to become the top two providers of home health and hospice services in the nation.

The Justice Department’s position is that the elimination of competition brought on by the merger would negatively impact patients receiving home health and hospice care, the insurers that partner with home health service providers, and the nurses delivering these essential services.

In support of the Justice Department’s case, attorneys general from four states—Maryland, Illinois, New Jersey, and New York—are collaborating in the antitrust lawsuit.

UnitedHealth is keen to incorporate Amedisys into its subsidiary Optum, which offers healthcare, pharmacy, and technology services. On Tuesday, Optum asserted that the acquisition “would promote competition and foster innovation.” The company stated its intent to “vigorously contest the DOJ’s overreaching interpretation of the antitrust laws.”

In response, Amedisys, which is headquartered in Louisiana, expressed its commitment to the merger, believing that it would enhance opportunities to provide quality, compassionate, and value-driven care for patients and their families.

Additionally, outside of its Optum division, UnitedHealth Group manages one of the largest health insurers, known as UnitedHealthcare. Recently, the Minnesota-based healthcare entity announced its financial results for the third quarter, showcasing a net income of $6.06 billion along with a total revenue of $100.82 billion.