On November 12, 2024, the U.S. Department of Justice (DOJ), in collaboration with the attorneys general of Maryland, Illinois, New Jersey, and New York, filed a civil antitrust lawsuit in the District of Maryland to block UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys Inc., a leading provider of home health and hospice services. The DOJ contends that the merger would significantly reduce competition in the home health and hospice markets, potentially leading to higher costs and diminished quality of care for patients.

UnitedHealth Group, headquartered in Minnetonka, Minnesota, is a diversified healthcare company operating through two main businesses: UnitedHealthcare, which provides health benefits, and Optum, which offers health services. In 2023, UnitedHealth reported revenues of $372 billion. The company expanded its home health services by acquiring LHC Group Inc., a major home health and hospice services provider, for $5.4 billion in 2023.

Amedisys Inc., based in Baton Rouge, Louisiana, is a leading provider of home health and hospice services. In 2023, Amedisys reported revenues of $2.2 billion, with healthcare professionals making 10.6 million patient visits across 37 states and the District of Columbia.

The DOJ's lawsuit alleges that the acquisition would eliminate direct competition between UnitedHealth and Amedisys, leading to higher costs and reduced quality of care for patients. The merger is also said to threaten the employment conditions of home health and hospice nurses by reducing competitive labor markets. Additionally, the DOJ seeks civil penalties against Amedisys for alleged violations of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, citing failures in document production and disclosure.

Attorney General Merrick B. Garland stated, "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." Assistant Attorney General Jonathan Kanter added, "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."

In response, UnitedHealth's Optum unit stated, "The Amedisys combination with Optum would be pro-competitive and further innovation, leading to improved patient outcomes and greater access to quality care. We will vigorously defend against the DOJ’s overreaching interpretation of the antitrust laws." Amedisys remains committed to the transaction and supports Optum in defending the deal.

The DOJ's action reflects the Biden administration's aggressive stance on antitrust enforcement, particularly in the healthcare sector. The lawsuit indicates increased regulatory scrutiny compared to previous mergers in the healthcare industry.

The outcome of this case could have significant implications for future healthcare mergers and the regulatory landscape governing them.