Current:Home > ScamsJustice Department sues to block UnitedHealth Group’s $3.3 billion purchase of Amedisys -FinanceMind
Justice Department sues to block UnitedHealth Group’s $3.3 billion purchase of Amedisys
View
Date:2025-04-19 12:31:35
NEW YORK (AP) — The Justice Department is suing to block UnitedHealth Group’s $3.3 billion purchase of Amedisys, citing concerns the combination would hinder access to home health and hospice services in the U.S.
The antitrust complaint, filed in Maryland by the Justice Department and four states’ attorneys general Tuesday, argues that a potential merger is illegal because the two companies are “such large competitors” already — and the deal would give UnitedHealth too much control in many local markets.
That would mean less choice for patients looking for affordable care, the suit alleges, as well as fewer employment options for nurses seeking competitive pay and benefits.
“American healthcare is unwell,” Assistant Attorney General Jonathan Kanter of the Justice Department’s antitrust division, said in a prepared statement. “Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses.”
Tuesday’s lawsuit follows UnitedHealth’s acquisition of LHC Group Inc., another home health and hospice provider. Since that transaction’s completion last year, the Justice Department said, UnitedHealth and Amedisys have emerged as two of the largest providers of home health and hospice care in the country.
The complaint alleges that UnitedHealth’s plan to acquire Amedisys is the result of “an intentional, sustained strategy of acquiring, rather than beating, competition.” After completing the LHC acquisition, the suit says UnitedHealth prevented Amedisys’ 2023 plans to merge with infusion provider OptionCare by paying a “breakup fee” — and then separately made its own acquisition offer, which Amedisys eventually accepted.
UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services. In a response Tuesday to the antitrust suit, Optum said the transaction “would be pro-competitive and further innovation.” It said it plans to “vigorously defend (itself) against the DOJ’s overreaching interpretation of the antitrust laws.”
Amedisys added that it also remains committed to the deal, which it believes “will create more opportunities to deliver quality, compassionate and value-based care to patients and their families.”
Beyond its Optum unit, UnitedHealth Group also runs one of the nation’s largest health insurers, UnitedHealthcare. The Minnesota-based healthcare giant reported third-quarter net income of $6.06 billion on revenue of $100.82 billion.
Louisiana-based Amedisys reported third-quarter earnings of $16.9 million and a revenue of $587.7 million for the period.
Tuesday’s lawsuit arrives in the final months of the Biden administration, which has been particularly aggressive in antitrust enforcement. In recent years, the Justice Department has also targeted companies accused of engaging in illegal monopolies and driving up prices across industries like entertainment, travel and tech.
The four states’ attorneys general joining Tuesday’s suit against UnitedHealth and Amedisys are from Maryland, Illinois, New Jersey and New York.
veryGood! (5)
Related
- Meet first time Grammy nominee Charley Crockett
- Maine storms wash away iconic fishing shacks, expose long-buried 1911 shipwreck on beach
- 4 people killed in Arizona hot air balloon crash identified; NTSB investigating incident
- Lionel Messi wins 'The Best FIFA' men's player of year award, beating out Mbappe, Haaland
- Bodycam footage shows high
- Live updates | Qatari premier warns of massive destruction, says ‘Gaza is not there anymore’
- Korean Air plane bumps parked Cathay Pacific aircraft at a Japanese airport but no injuries reported
- Niecy Nash's Emmys speech pays tribute to 'every Black and brown woman who has gone unheard'
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- Defense Secretary Lloyd Austin released from hospital
Ranking
- 'Malcolm in the Middle’ to return with new episodes featuring Frankie Muniz
- Heading into Iowa caucuses, Ron DeSantis says a lot of Iowans haven't made up a final decision
- Thai officials, accused of coddling jailed ex-PM, say not calling him ‘inmate’ is standard practice
- AP VoteCast: Iowa caucusgoers want big changes, see immigration as more important than the economy
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- 'It's trash': Dolphins cope with owning NFL's longest playoff win drought after Lions' victory
- Kansas City Chiefs vs. Buffalo Bills: Odds and how to watch AFC divisional playoff game
- Just Lay Here and Enjoy This Epic Grey's Anatomy Reunion at the 2023 Emmy Awards
Recommendation
Travis Hunter, the 2
Aubrey Plaza Takes a Stab at Risqué Dressing at the 2023 Emmys With Needle-Adorned Look
Wave of transgender slayings in Mexico spurs anger and protests by LGBTQ+ community
Turkey releases Israeli soccer player Sagiv Jehezkel after detention for displaying Gaza war message
North Carolina justices rule for restaurants in COVID
Uber to shut down Drizly, the alcohol delivery service it bought for $1.1 billion
Ships and aircraft search for 2 Navy SEALs missing after mission to confiscate Iranian missile parts
Wave of transgender slayings in Mexico spurs anger and protests by LGBTQ+ community