Optum's Plan to Acquire Amedisys Faces DOJ Block

The U.S. Department of Justice (DOJ) has filed a lawsuit to block UnitedHealth Group, through its subsidiary Optum, from acquiring home health care provider Amedisys in a deal valued at $3.3 billion. The case, presented in a federal court in Maryland, centers on antitrust concerns, alleging that the merger would reduce competition and increase prices in the home healthcare sector across 23 states and Washington, D.C. Optum announced its intent to acquire Amedisys, which employs approximately 18,000 staff across 522 care centers, in June 2023. Despite Amedisys shareholders approving the deal in September 2023, regulatory bodies and lawmakers, including Sen. Elizabeth Warren, have expressed concerns regarding the merger's implications on competition, particularly as the home health market grows with the aging U.S. population. Optum, which has expanded its home healthcare operations, previously acquired LHC Group for $5.4 billion in February 2023 and holds about 10% of the market share. The DOJ has been scrutinizing the merger since August 2023, with separate investigations launched, including one in Oregon and another targeting UnitedHealth’s broader business practices. To address regulatory concerns, Optum and Amedisys agreed to divest some care centers to VitalCaring Group.