Current:Home > MyJustice Department sues to block UnitedHealth Group’s $3.3 billion purchase of Amedisys-InfoLens
Justice Department sues to block UnitedHealth Group’s $3.3 billion purchase of Amedisys
View Date:2024-12-23 12:06:55
NEW YORK (AP) — The Justice Department is suing to block UnitedHealth Group’s $3.3 billion purchase of Amedisys, citing concerns the combination would hinder access to home health and hospice services in the U.S.
The antitrust complaint, filed in Maryland by the Justice Department and four states’ attorneys general Tuesday, argues that a potential merger is illegal because the two companies are “such large competitors” already — and the deal would give UnitedHealth too much control in many local markets.
That would mean less choice for patients looking for affordable care, the suit alleges, as well as fewer employment options for nurses seeking competitive pay and benefits.
“American healthcare is unwell,” Assistant Attorney General Jonathan Kanter of the Justice Department’s antitrust division, said in a prepared statement. “Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses.”
Tuesday’s lawsuit follows UnitedHealth’s acquisition of LHC Group Inc., another home health and hospice provider. Since that transaction’s completion last year, the Justice Department said, UnitedHealth and Amedisys have emerged as two of the largest providers of home health and hospice care in the country.
The complaint alleges that UnitedHealth’s plan to acquire Amedisys is the result of “an intentional, sustained strategy of acquiring, rather than beating, competition.” After completing the LHC acquisition, the suit says UnitedHealth prevented Amedisys’ 2023 plans to merge with infusion provider OptionCare by paying a “breakup fee” — and then separately made its own acquisition offer, which Amedisys eventually accepted.
UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services. In a response Tuesday to the antitrust suit, Optum said the transaction “would be pro-competitive and further innovation.” It said it plans to “vigorously defend (itself) against the DOJ’s overreaching interpretation of the antitrust laws.”
Amedisys added that it also remains committed to the deal, which it believes “will create more opportunities to deliver quality, compassionate and value-based care to patients and their families.”
Beyond its Optum unit, UnitedHealth Group also runs one of the nation’s largest health insurers, UnitedHealthcare. The Minnesota-based healthcare giant reported third-quarter net income of $6.06 billion on revenue of $100.82 billion.
Louisiana-based Amedisys reported third-quarter earnings of $16.9 million and a revenue of $587.7 million for the period.
Tuesday’s lawsuit arrives in the final months of the Biden administration, which has been particularly aggressive in antitrust enforcement. In recent years, the Justice Department has also targeted companies accused of engaging in illegal monopolies and driving up prices across industries like entertainment, travel and tech.
The four states’ attorneys general joining Tuesday’s suit against UnitedHealth and Amedisys are from Maryland, Illinois, New Jersey and New York.
veryGood! (1)
Related
- Black women notch historic Senate wins in an election year defined by potential firsts
- Goodnight, sweet spacecraft: NASA's InSight lander may have just signed off from Mars
- Sudan conflict rages on after a month of chaos and broken ceasefires
- NPR staff review the best new games and some you may have missed
- Judge extends the time to indict the driver accused of killing Johnny Gaudreau and his brother
- Keep Your Dog Safe in the Dark With This LED Collar That Has 18,500+ 5-Star Reviews
- She was denied entry to a Rockettes show — then the facial recognition debate ignited
- Pope Francis calls on Italy to boost birth rates as Europe weathers a demographic winter
- Taylor Swift drops Christmas merchandise collection, including for 'Tortured Poets' era
- 2 more suspects arrested in deadly kidnapping of Americans in Mexico
Ranking
- Satire publication The Onion buys Alex Jones’ Infowars at auction with help from Sandy Hook families
- Nordstrom Rack's Epic Clear the Rack Sale Is Here With $13 Dresses, $15 Jackets & More 80% Off Deals
- One of Grindr's favorite podcasts; plus, art versus AI
- Transcript: Laredo, Texas, Mayor Victor Trevino on Face the Nation, May 14, 2023
- Homes of Patrick Mahomes, Travis Kelce burglarized, per reports
- John Deere vows to open up its tractor tech, but right-to-repair backers have doubts
- 'Company of Heroes 3' deserves a spot in any war game fan's library
- 'The Last of Us' game actors and creator discuss the show's success
Recommendation
-
Quincy Jones' cause of death revealed: Reports
-
Transcript: Nikki Haley on Face the Nation, May 14, 2023
-
Pakistan Supreme Court orders ex-Prime Minister Imran Khan's immediate release after 2 days of deadly riots
-
The Goldbergs Star Wendi McLendon-Covey Admits Jeff Garlin's Exit Was A Long Time Coming
-
Patrick Mahomes Breaks Silence on Frustrating Robbery Amid Ongoing Investigation
-
Wind energy powered the U.K. more than gas this year for the first time ever
-
2 more suspects arrested in deadly kidnapping of Americans in Mexico
-
Most of us are still worried about AI — but will corporate America listen?