Justice Department Sues to Block UnitedHealth’s $3.3 Billion Bid for Amedisys

Justice Department Alleges Anticompetitive Conduct

The Justice Department filed a lawsuit on Thursday to block UnitedHealth Group Inc.’s $3.3 billion bid for Amedisys Inc., alleging that the deal would harm competition in the market for home health care services.

The department said in a statement that the merger would give UnitedHealth, the nation’s largest health insurer, too much control over the home health care market. The department said the deal would reduce competition and lead to higher prices for consumers.

UnitedHealth Denies Allegations

UnitedHealth denied the Justice Department’s allegations, saying that the merger would benefit consumers by creating a more efficient and effective home health care system. The company said it would continue to fight the lawsuit.

Deal Would Create a Dominant Player

The Justice Department’s lawsuit is a major setback for UnitedHealth, which has been trying to expand its reach in the home health care market. The deal would have given UnitedHealth a dominant position in the market, with a market share of about 30%.

Market Consolidation

The lawsuit is also a sign of the Justice Department’s increasing scrutiny of mergers in the health care industry. The department has been concerned about the growing consolidation in the industry, which it believes is leading to higher prices for consumers.

Impact on Consumers

The Justice Department’s lawsuit is likely to delay the merger, which was expected to close in the first half of 2023. The lawsuit could also have a negative impact on UnitedHealth’s stock price.

The deal is the latest in a series of mergers and acquisitions in the health care industry. The Justice Department has challenged several of these deals, including the merger of Aetna Inc. and Humana Inc. in 2016.

The Justice Department’s lawsuit is a reminder that the government is closely scrutinizing mergers in the health care industry. Companies that are considering mergers should be aware of the potential antitrust risks.