US Justice Department Preps Lawsuit Over UnitedHealth-Amedisys Deal
Regulators concerned about anti-competitive behavior
The U.S. Department of Justice (DOJ) is reportedly preparing a lawsuit to block the proposed merger between UnitedHealth Group (UNH) and Amedisys Inc. (AMED), according to a recent report by Bloomberg News. The DOJ is concerned that the deal could result in anti-competitive behavior and higher prices for consumers.The proposed merger would create a healthcare giant with a combined revenue of over $350 billion. UnitedHealth is the largest health insurer in the U.S., while Amedisys is a leading provider of home health care services. The DOJ is concerned that the merger would give UnitedHealth too much control over the healthcare market and could lead to higher prices for consumers.
The DOJ has reportedly been investigating the proposed merger for months. The agency has interviewed executives from both companies and reviewed internal documents. The DOJ is expected to file a lawsuit to block the merger in the coming weeks.
Experts question the DOJ's motives
Some experts have questioned the DOJ's motives for blocking the merger. They argue that the merger would actually benefit consumers by creating a more efficient and affordable healthcare system. They also argue that the DOJ is overstepping its authority by trying to block the merger.The DOJ has not yet commented on the Bloomberg News report. However, the agency has a history of blocking mergers that it believes could harm competition. In 2021, the DOJ blocked the proposed merger between AT&T and T-Mobile. The DOJ also blocked the proposed merger between Aetna and Humana in 2019.
