U.S. Authorities Seek to Stop UnitedHealth’s $3.3 Billion Home Care Company

livewell
November 18, 2024
Noah Bennett

The U.S. Justice Department and four states (Maryland, New York, New Jersey, and Illinois) have filed a lawsuit against the purchase of Amedisys by UnitedHealth Group. The $3.3 billion deal is considered to harm healthy competition in the market because both are already large competitors in the healthcare field. The federal government and all states have filed the lawsuit in Maryland and argue that the deal will give too much control to the UnitedHealth Group in many states.

DOJ Statement

The Department of Justice has clear reasons behind the U.S. regulatory block effort. The complainants have the view that the deal will reduce options for patients seeking affordable care. Additionally, it will harm the prospects of better pay and other benefits for nurses and other healthcare staff. The Assistant Attorney General explained the views of the department with his statement that UnitedHealth will extend its grip on the local market with this deal and this will impact negatively on the elderly and nurses.

He adds that both these companies are now two of the largest providers of home health and related services in the country and this merger will deal a blow to competition in the market. Before this deal, UnitedHealth recently purchased LHC Group, another home and hospice provider, which increases the significance of this healthcare merger scrutiny.

Allege of False Play

The DOJ’s lawsuit is not only for the antitrust laws, but it also alleged that UnitedHealth took illegal advantage of its position to home care company purchase of a competitor in the field. The lawsuit says that Amedisys initially planned to merge with OptionCare, an infusion provider. However, UnitedHealth failed this process by paying a fee to break up the merger. Later, it presented its offer, which Amedisys accepted.

After acquiring its competitor, UnitedHealth plans to add Amedisys to its subsidiary Optum, which provides pharmacy and technology services.

UnitedHealth Response

Optum and Amedisys have defended this UnitedHealth acquisition and rejected the allegations of federal and state governments. Optum has the view that the acquisition will enhance innovation and doesn’t break any law or fair competition. It vows to defend this deal vigorously because the department is misusing and misinterpreting the antitrust laws.

Amedisys also shows its commitment to defend the deal with its new partner. It rejected the accusations of the department and said the acquisition will enhance opportunities to deliver quality service, which will ultimately benefit patients and their families.

UnitedHealth maintains that the merger of both companies (Amedisys and Optum) only represents a fraction of home health and hospice services around the USA. Optum also tried to convince the government by saying that after the completion of the deal, it would transfer some of its care centers to VitalCaring, a home health provider. However, the Justice Department rejected the offer by stating it was inadequate.

UnitedHealth Group

UnitedHealth Group is a multinational health insurance company, founded in 1977 and headquartered in Minnesota. It is the world’s largest healthcare company by revenue. It is currently facing its $3.3 billion acquisition dispute related to a home care company.