The US Department of Justice (DOJ), along with attorneys general from four states, has filed an antitrust lawsuit to block UnitedHealth Group's $3.3 billion acquisition of Amedisys Inc., a major provider of home health and hospice care.
The lawsuit, filed in Maryland federal court, claims the deal would harm competition, leading to higher prices and fewer options for patients in need of critical home care services.
DOJ Sues to Block UnitedHealth's $3.3 Billion Merger
UnitedHealth, based in Minnesota, is a massive healthcare conglomerate with operations spanning insurance, clinics, and pharmacy benefit management. Amedisys, headquartered in Louisiana, is one of the largest home health companies in the US.
The DOJ argues the merger would create a significant concentration of market power, particularly in Southern states where both companies compete heavily, CBS News said.
The proposed acquisition comes just one year after UnitedHealth purchased LHC Group, another major player in home health services.
Regulators fear the combined market share of Amedisys and LHC Group could result in monopolistic practices in some regions, potentially compromising affordability and quality of care.
The DOJ and its state partners assert that UnitedHealth's attempts to address antitrust concerns—such as offering to sell over 100 Amedisys facilities to a competitor, VitalCaring Group—are insufficient. Regulators point out that VitalCaring faces financial challenges and operational issues that could limit its ability to provide effective competition.
UnitedHealth Vows to Fight DOJ Lawsuit
According to The NY Times, UnitedHealth has pushed back against the lawsuit, maintaining that the merger would promote innovation, improve patient care, and expand access to services.
A spokesperson from the company stated that it would "vigorously defend" against the DOJ's claims.
The lawsuit highlights growing scrutiny of corporate consolidation in the healthcare sector under the Biden administration. Federal regulators have increasingly challenged mergers deemed to reduce competition and harm consumers.
UnitedHealth faced a similar antitrust case in 2021 when the DOJ unsuccessfully tried to block its $13 billion acquisition of Change Healthcare.
Assistant Attorney General Jonathan Kanter emphasized the importance of protecting patients and families during vulnerable times. He stated that the DOJ remains committed to preventing monopolistic behavior that could harm both patients and healthcare workers.
The outcome of this case could have significant implications for the healthcare industry, as UnitedHealth continues to expand its influence across various sectors.
If blocked, the lawsuit may signal a stricter stance against healthcare mergers that risk creating monopolies and reducing consumer choice.
