UnitedHealth to Divest assets in $3.3 Billion Amedisys deal Amid Antitrust Concerns
The Justice Department has reached a proposed settlement with UnitedHealth Group regarding its $3.3 billion acquisition of Amedisys Inc., requiring the company to divest 164 home health and hospice locations across 19 states.This divestiture,totaling approximately $528 million in annual revenue,represents the largest of its kind in outpatient healthcare services to resolve a merger challenge.
The agreement also includes a $1.1 million civil penalty for Amedisys, stemming from false certifications made during the Hart-Scott-rodino (HSR) Antitrust Improvements Act of 1976 review process.
“In no sector of our economy is competition more crucial to Americans’ well-being then healthcare,” stated Assistant Attorney General Abigail slater. “This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses.”
Key components of the settlement include:
Divestiture of 164 home health and hospice locations across 19 states.
Potential divestiture of eight additional locations pending regulatory approvals.
Appointment of a monitor to oversee the asset divestiture and ensure compliance.
Protections to support the competitiveness of the divestiture buyers.
* A $1.1 million penalty for Amedisys and mandatory antitrust compliance training for its leadership.
The proposed settlement will be published in the Federal Register, initiating a 60-day public comment period. Interested parties can submit comments to Jill Maguire, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. Final court approval will follow based on public interest considerations.
UnitedHealth, a major player in insurance, healthcare provision, and related services, previously acquired LHC Group Inc. in 2023. Amedisys is a prominent provider of home health and hospice services.
