DOJ prepares lawsuit to block UnitedHealth's $1.3 billion deal for home-health company Amedisys

Antitrust regulators believe deal could threaten competition by creating the nation's largest player in home health

Suit could be filed as soon as this week, sources say

The Justice Department is preparing an antitrust lawsuit to block UnitedHealth Group Inc's $1.3 billion deal for home-health company Amedisys Inc, according to people familiar with the matter.

The lawsuit could be filed as soon as this week, the people said, requesting anonymity to discuss a non-public matter.

The Justice Department declined to comment. UnitedHealth and Amedisys did not immediately respond to requests for comment.

The deal, announced in July, would combine UnitedHealth's health insurance business with Amedisys's home-health operations, creating the largest player in the rapidly growing home-health market.

But antitrust regulators are concerned that the deal could harm competition by giving UnitedHealth too much control over the home-health market, which provides services such as nursing, physical therapy and occupational therapy to patients in their homes.

The lawsuit would mark the Biden administration's second major antitrust challenge to a healthcare merger. In December, the Justice Department sued to block insurer Cigna Corp's $5.4 billion deal for home-health company LHC Group Inc.

The Justice Department has also been investigating other healthcare mergers, including CVS Health Corp's $8 billion deal for home-health company Signify Health Inc.

The Biden administration has made antitrust enforcement a priority, particularly in the healthcare sector.