Justice Department Moves To Block UnitedHealth's Amedisys Takeover: What's Going On?

UnitedHealth Group Inc UNH shares are trading lower Tuesday. The U.S. Justice Department is moving to block the company’s multi-billion acquisition of Amedisys Inc AMED.

What To Know: The Justice Department has sued to block UnitedHealth’s $3.3 billion purchase of healthcare services company Amedisys, citing concerns related to competition in the home health services market, according to The Wall Street Journal.

Antitrust enforcers are concerned that a potential business combination could cause healthcare price increases in the areas where Amedisys competes with UnitedHealth's LHC Group.

“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," Assistant Attorney General Jonathan Kanter said.

The Justice Department reportedly filed the complaint in Maryland federal court, supported by state attorneys general of Maryland, Illinois, New Jersey and New York.

The report indicates that UnitedHealth and Amedisys executives met with the Justice Department last week, aiming to ease concerns. The companies proposed selling some of their other assets to VitalCaring Group.

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UnitedHealth entered into an agreement to acquire Amedisys last year. At the time, analysts raised concerns that the deal was likely to face scrutiny given the company’s robust home healthcare presence.

United Health bought LHC Group for about $5.4 billion in 2022. Amedisys is a main competitor to UnitedHealth’s LHC Group. Amedisys shares were down 2.21% at $90.54 at last check.

UNH Price Action: UnitedHealth shares were down 1.18% at $617.85 at the time of publication Tuesday, according to Benzinga Pro.

Photo: courtesy of UnitedHealth.