The U.S. Department of Justice Antitrust Division and state co-plaintiffs have filed a proposed settlement requiring UnitedHealth Group Incorporated to divest 164 home health and hospice locations as part of its $3.3 billion acquisition of Amedisys Inc. The divestitures, which include one palliative care facility across 19 states and represent approximately $528 million in annual revenue, are intended to address concerns about reduced competition in the healthcare sector.
Amedisys has also agreed to pay a $1.1 million civil penalty for providing false certifications regarding its compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
“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,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “I commend the Antitrust Division’s Staff for doggedly investigating and prosecuting this case on behalf of seniors, hospice patients, nurses, and their families.”
The proposed settlement marks the largest divestiture by number of outpatient healthcare facilities to resolve a merger challenge in this area.
As required by law, the proposed settlement and a competitive impact statement will be published in the Federal Register. The public will have 60 days from publication to submit comments to Jill Maguire, Acting Chief, Healthcare and Consumer Products Section at the Antitrust Division. After reviewing comments, the U.S. District Court for the District of Maryland will determine if entering final judgment is in the public interest.
