The U.S. Justice Department has filed a lawsuit against UnitedHealth Group, parent company of Optum, to prevent its planned $3.3 billion acquisition of home health provider Amedisys, Bloomberg reported Nov. 12.
Here are 10 things to know:
1. Despite recent meetings between UnitedHealth and federal officials to advocate for the deal, the lawsuit — filed in a Maryland federal court on Nov. 12 — reflects concerns over competition in the home health market.
2. The lawsuit alleges that the acquisition would drive up home healthcare prices in 23 states plus Washington, D.C.
3. In June 2023, Optum announced its intent to merge with Baton Rouge, La.-based Amedisys, which employs about 18,000 staff across 522 care centers in 37 states and Washington, D.C. The agreement outlined an all-cash acquisition of Amedisys' outstanding common stock at $101 per share.
4. The DOJ has been examining the merger since August 2023. Oregon regulators also opened a separate review in March 2024, following a preliminary report that raised concerns about the deal's impact on competition within the state's home health market.
5. Approved by Amedisys shareholders in September 2023, the deal aims to combine two organizations committed to "compassionate, value-based comprehensive care for patients and their families," according to an Amedisys news release.
6. In an SEC filing at the time of shareholder approval, Amedisys cautioned that "there can be no assurance that the merger will not face an antitrust challenge or, if such a challenge arises, that it will be unsuccessful."
7. Lawmakers have been criticizing the deal. In October 2023, Massachusetts Sen. Elizabeth Warren and Washington Rep. Pramila Jayapa in a letter called on the Federal Trade Commission and the Justice Department's antitrust division to "carefully scrutinize" the transaction.
"Now, as the U.S. population ages and more people become eligible for Medicare, [UnitedHealth] and other large insurers are looking to cash in on the booming home health industry, allowing them to keep more premium dollars inhouse from treating patients at insurer-owned facilities," the lawmakers wrote.
8. Optum has expanded its home care acquisitions in recent years. The company closed on a $5.4 billion acquisition of home health provider LHC Group — which operates over 900 facilities — in February 2023. If UnitedHealth’s purchase of Amedisys goes through, the company would control approximately 10% of the home health market, according to Bloomberg.
9. In June 2023, Amedisys and UnitedHealth agreed to divest an undisclosed number of care centers to VitalCaring Group in an effort to ease regulatory concerns about the merger.
10. Optum, parent company of SCA Health, has grown rapidly in the last couple of years — including recently eyeing the acquisition of Brentwood, Tenn.-based ASC operator Surgery Partners, leaving industry leaders concerned about the potential effects. The DOJ launched a separate antitrust investigation into UnitedHealth Group in February 2024, focusing on the company's relationship between its insurance unit and Optum.