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 on November 12, 2024, to block UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys Inc., a leading provider of home health and hospice services. The lawsuit, filed in the District of Maryland, alleges that the merger would significantly reduce competition in the home health and hospice markets, potentially harming patients, insurers, and healthcare workers.

UnitedHealth Group, a diversified healthcare company headquartered in Minnetonka, Minnesota, announced its intent to acquire Amedisys in June 2023. The plan was to integrate Amedisys into UnitedHealth's Optum subsidiary, which offers care, pharmacy, and technology services. The acquisition was valued at $3.3 billion, with UnitedHealth offering $100 per share in cash, representing a 26% premium over Amedisys' stock price at the time.

The DOJ contends that the merger would eliminate significant competition between UnitedHealth and Amedisys, potentially harming patients who rely on home health and hospice services, insurers contracting for these services, and nurses providing care. The complaint highlights that, following UnitedHealth's 2023 acquisition of LHC Group Inc., both UnitedHealth and Amedisys have become two of the largest providers in the home health and hospice sectors.

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 of the DOJ's Antitrust Division 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."

UnitedHealth Group has contested the DOJ's allegations, arguing that the acquisition would be pro-competitive and foster innovation, leading to improved patient outcomes and greater access to quality care. The company stated, "We will vigorously defend against the DOJ's overreaching interpretation of the antitrust laws."

In January 2025, UnitedHealth and Amedisys filed a motion to dismiss the lawsuit, contending that the DOJ failed to specify the exact geographic regions where competition would be adversely affected. They argued that the complaint "violates a core pleading requirement of any antitrust case."

Facing ongoing legal challenges, UnitedHealth and Amedisys extended the deadline to finalize their merger to December 31, 2025. This extension allows additional time to address regulatory concerns and legal proceedings.

This legal action is part of the Biden administration's broader antitrust enforcement efforts, focusing on maintaining competition in the healthcare sector. The DOJ's assertive stance aims to reinforce competitive practices and prevent monopolization that could harm vulnerable patients and healthcare workers.

The outcome of this lawsuit could have significant implications for the healthcare industry, particularly in the home health and hospice sectors. If the merger proceeds, it may set a precedent for future consolidations, potentially leading to further scrutiny of similar deals. Conversely, blocking the merger could signal a more aggressive approach by regulators in maintaining competition within the healthcare market.

As the legal proceedings unfold, stakeholders across the healthcare industry will be closely monitoring the case, recognizing its potential to reshape the competitive landscape and influence future mergers and acquisitions.