UnitedHealth and Amedisys Prepare for Key Antitrust Meeting with DOJ

UnitedHealth Group Inc. and Amedisys Inc. are preparing for a pivotal meeting next week with top officials from the Department of Justice (DOJ) as part of their efforts to secure approval for their proposed $3.3 billion merger. This high-stakes encounter, described by sources as a “last-rites” meeting, will involve discussions with Assistant Attorney General for Antitrust, Jonathan Kanter, among other key officials, according to Bloomberg.

As the companies approach this critical juncture, sources familiar with the negotiations indicate that the meeting could take place as early as Monday. The discussions come after more than a year of scrutiny by the DOJ, which has raised concerns that the merger could potentially lead to increased prices for home-health services. Per Bloomberg, the DOJ has until the end of October to make a formal decision regarding the merger, a timeline established under an agreement with the involved parties.

While no definitive decision has been reached, officials could permit the acquisition to move forward, potentially with conditions aimed at addressing competitive concerns. According to sources, to mitigate these worries, UnitedHealth and Amedisys have proposed divesting an undisclosed number of clinics to VCG Luna LLC, a subsidiary of Texas-based VitalCaring Group. This proposed solution has been under examination by the DOJ for several months following a comprehensive investigation initiated in August 2023.

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UnitedHealth, which has established itself as the largest health-services company in the U.S. by revenue through a series of strategic mergers that combine insurance with healthcare practices, is facing increased scrutiny from antitrust regulators. The DOJ is already investigating allegations regarding UnitedHealth’s monopolistic practices in various healthcare markets.

This merger is not UnitedHealth’s first venture into the home health sector; the company acquired LHC Group last year, a move that drew the attention of the Federal Trade Commission (FTC). The FTC ultimately did not challenge that deal since UnitedHealth was not actively competing in the home healthcare arena at that time. The LHC Group, which has nearly 1,000 locations across 37 states, combined with Amedisys’s 537 care centers operating in the same number of states, raises concerns about overlapping services, particularly in the South, where the merged entity would control a significant share of the market.

Despite the complexities surrounding the deal, both UnitedHealth and Amedisys have expressed their intentions to finalize the merger by the end of December. Meanwhile, neither company, nor the DOJ, has publicly commented on the pending meeting or the broader implications of the merger.

Source: Bloomberg