The United States Department of Justice, in collaboration with the Attorneys General from Maryland, Illinois, New Jersey, and New York, has filed a civil antitrust lawsuit to prevent UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys Inc., a home health and hospice services provider. The complaint was submitted in the District of Maryland.
The Justice Department claims that this transaction would reduce competition between UnitedHealth and Amedisys. These companies have been major players in the home health and hospice sector since UnitedHealth acquired LHC Group Inc., another competitor, in 2023. The department argues that removing this competition could negatively impact patients relying on these services, insurers contracting for them, and healthcare workers providing care.
Attorney General Merrick B. Garland stated, "We are challenging this merger because home health and hospice patients and their families experiencing some of the most difficult moments of their lives deserve affordable, high-quality care options." He emphasized the department's commitment to preventing unlawful consolidation in healthcare markets.
Principal Deputy Associate Attorney General Benjamin C. Mizer remarked on the importance of maintaining quality and affordability in healthcare markets: "Millions of patients depend on United and Amedisys to receive home health and hospice care in the comfort of their homes."
Assistant Attorney General Jonathan Kanter added his concerns about market dominance: "Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care."
According to the complaint, both companies are significant competitors in home health and hospice services across various states. It highlights that former CEO of Amedisys acknowledged how competition between these firms ensures better quality for patients.
UnitedHealth’s acquisition would allegedly make it dominant across numerous local markets for these services. The proposed divestiture by UnitedHealth to VitalCaring Group is seen as insufficient by the complaint due to ongoing issues with over 100 affected markets generating substantial revenue annually.
Additionally, civil penalties are sought against Amedisys for purported violations related to document compliance under antitrust regulations during its certification process.
UnitedHealth is headquartered in Minnetonka, Minnesota while Amedisys operates out of Baton Rouge, Louisiana. Both entities reported significant revenues from millions of patient visits across several states last year.
