Court approves DOJ settlement requiring major divestitures in UnitedHealth-Amedisys merger

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Abigail Slater, Assistant Attorney General of the Justice Department’s Antitrust Division | Official website

Court approves DOJ settlement requiring major divestitures in UnitedHealth-Amedisys merger

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The United States District Court for the District of Maryland has approved a settlement proposed by the Justice Department’s Antitrust Division and its state co-plaintiffs regarding UnitedHealth Group's $3.3 billion acquisition of Amedisys Inc. The court's decision requires significant divestitures to address concerns about reduced competition in the healthcare sector.

As part of the settlement, Amedisys is required to pay a $1.1 million civil penalty to the United States for providing inaccurate information under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“Under President Trump and Attorney General Pam Bondi, this Department of Justice has moved quickly to resolve transactions, ensuring Americans see the benefits sooner,” said Associate Attorney General Stanley Woodward. “This settlement preserves competition where it matters most for American families – healthcare.”

“This is a tremendous outcome for competition in the healthcare industry, where competition itself is critical to the public interest and the well-being of all Americans,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “I commend the Antitrust Division’s Staff for prosecuting this case throughout a contentious litigation to reach this settlement on behalf of seniors, hospice patients, nurses, and their families.”

According to terms outlined in the agreement, UnitedHealth and Amedisys must divest at least 164 home health and hospice locations—including one palliative care facility—across 19 states. These facilities represent approximately $528 million in annual revenue. This marks one of the largest divestitures by number of outpatient healthcare services locations ever required as part of a merger resolution.

William E. Berlin from Hall, Render, Killian, Heath & Lyman has been appointed by the court as monitor for compliance with these requirements.

UnitedHealth is based in Eden Prairie, Minnesota and operates as an insurer, healthcare provider, pharmacy benefit manager, and vendor for healthcare software and services. In 2023, UnitedHealth also acquired LHC Group Inc., another major provider in home health and hospice care services. Amedisys was headquartered in Baton Rouge, Louisiana before this transaction.

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