DOJ sues UnitedHealth to block Amedisys deal 

WASHINGTON – The U.S. Department of Justice, together with the attorneys general of Maryland, Illinois, New Jersey and New York, has filed a civil antitrust lawsuit to block UnitedHealth Group’s proposed $3.3 billion acquisition of Amedisys because it would eliminate competition between the two companies. 

Since UnitedHealth’s acquisition of LHC Group, a competitor of Amedisys, in 2023, UnitedHealth and Amedisys have been two of the largest home health and hospice providers in the United States. Merging the two companies would harm patients who receive these services, insurers who contract for home health services and nurses who provide home health and hospice services, according to the lawsuit. 

“We are challenging this merger because home health and hospice patients and their families experiencing some of the most difficult moments of their lives deserve affordable, high quality care options,” said Attorney General Merrick B. Garland. “The Justice Department will not hesitate to check unlawful consolidation and monopolization in the healthcare market that threatens to harm vulnerable patients, their families, and health care workers.” 

According to the lawsuit, UnitedHealth’s market share after the transaction would make the merger presumptively illegal in: 

• Hundreds of local home health care markets, with an annual volume of commerce exceeding $1.6 billion annually, in 23 states and the District of Columbia; 
• Dozens of local hospice markets, with an annual volume of commerce exceeding $300 million annually, in 8 states; and 
• Hundreds of local markets for home health and hospice nurse labor, employing at least 8,000 nurses, in 24 states. 

To address some of the overlaps between UnitedHealth and Amedisys, UnitedHealth has proposed to divest certain facilities to VitalCaring Group (VitalCaring), but the lawsuit alleges that does not alleviate harm in more than 100 home health, hospice and labor markets, which generate at least $1 billion in revenue annually, serve at least 200,000 patients and employ at least 4,000 nurses. 

The DOJ also seeks civil penalties against Amedisys for allegedly falsely certifying compliance with its obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). The complaint alleges that Amedisys violated the HSR Act because, at the time of its sworn certification, the company failed to produce millions of documents or disclose the deletion of other documents. For each day that Amedisys was in violation of the HSR Act, the government seeks a monetary penalty of up to $51,744, as authorized by statute.