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DOJ Oks UnitedHealth, Amedisys deal on divestiture conditions
DOJ said UnitedHealth and Amedisys could move ahead with the $3.3B acquisition as long as they both divest at least 164 of their home health and hospice facilities.
UnitedHealth Group has the all-clear to move ahead with its $3.3 billion acquisition of home health and hospice provider Amedisys, as long as both companies divest some of their businesses, according to the Department of Justice.
In the proposed settlement issued today, DOJ stated that both UnitedHealth Group and Amedisys would have to divest at least 164 of their home health and hospice facilities. Additionally, Amedisys will be on the hook for a $1.1 million civil penalty for falsely certifying that it had provided "true, correct and complete" responses under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The acquisition has been under the microscope since UnitedHealth Group announced its intent to purchase Amedisys in June of 2023 for antitrust purposes. UnitedHealth Group already had a number of home health and hospice facilities across the nation and would gain about 500 more in five new states in addition to the 32 where UnitedHealth Group already has sites.
"In no sector of our economy is competition more important to Americans' well-being than healthcare. This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses," Abigail Slater, Assistant Attorney General of the Justice Department’s Antitrust Division, said in a statement. "I commend the Antitrust Division's Staff for doggedly investigating and prosecuting this case on behalf of seniors, hospice patients, nurses, and their families."
More specifically, UnitedHealth and Amedisys will have to divest 164 home health and hospice locations across 19 states, which DOJ said accounts for around $528 million in annual revenue.
The settlement comes after a lengthy bidding war over Amedisys. Before UnitedHealth threw its hat into the ring, Option Care Health had entered into a definitive merger agreement with Amedisys.
Sara Heath has reported news related to patient engagement and health equity since 2015.
