UnitedHealth Group Faces DOJ Roadblock in Amedisys Acquisition

Deal News | Jan 16, 2025 | EIN

The article provides an overview of notable mergers and acquisitions in the healthcare sector during the fourth quarter of 2024, despite a general decline in M&A activity in the sector. It highlights the Federal Trade Commission's (FTC) increased scrutiny on premerger notification forms to prevent antitrust violations. The article details several major healthcare M&A activities. These include the DOJ's challenge to UnitedHealth Group's $3.3 billion acquisition of Amedisys due to antitrust concerns, resulting in an extension of the deal's closing deadline. Other notable transactions include Union Hospital and Terre Haute Regional Hospital withdrawing their merger application after FTC opposition, Risant Health's integration with Cone Health, conditional approval of Radys Children's Hospital's merger with Children's HealthCare of California, and Orlando Health's $910 million purchase of Brookwood Baptist Health from Tenet Healthcare. Smaller-scale transactions comprise Brown University Health's $175 million acquisition of Morton and Saint Annes Hospitals, Astrana Health's $745 million acquisition of Prospect Health System assets, and Summa Health's acquisition by General Catalyst's HATCo for $485 million. The article concludes with the merger of Krohn Clinic and Black River Memorial Hospital into Black River Health.

Sectors

Healthcare
Legal/Regulatory

Geography

United States – The article focuses on M&A transactions involving healthcare systems across different states in the U.S. such as California, Indiana, and Alabama.

Industry

Healthcare – The article discusses mergers and acquisitions primarily within the healthcare sector, including those involving hospitals and health systems.
Legal/Regulatory – The article highlights significant regulatory challenges and antitrust concerns raised by the Federal Trade Commission and Department of Justice.

Financials

$3.3 billion – Intended acquisition price of Amedisys by UnitedHealth Group.
$910 million – Acquisition price for Brookwood Baptist Health from Tenet Healthcare by Orlando Health.
$175 million – Acquisition price for Morton Hospital and Saint Annes Hospital by Brown University Health.
$745 million – Acquisition price for selected assets of Prospect Health System by Astrana Health.
$485 million – Summa Health acquisition price by General Catalyst's Health Assurance Transformation (HATCo).

Participants

Name	Role	Type	Description
UnitedHealth Group	Bidding Company	Company	A diversified healthcare company seeking to acquire Amedisys.
Amedisys	Target	Company	A home health and hospital provider operating across more than 30 states.
Federal Trade Commission	Government	Government	U.S. government agency increasing scrutiny on healthcare M&A activities due to antitrust concerns.
Department of Justice	Government	Government	The U.S. DOJ announced plans to block UnitedHealth's acquisition of Amedisys.
PwC	Other	Company	Provided the report comparing Healthcare M&A activity between 2023 and 2024.
VitalCaring Group	Other	Company	Potential buyer of divested assets from UnitedHealth's attempted acquisition of Amedisys.
Union Hospital	Target	Company	Hospital involved in a merger application subsequently withdrawn.
Terre Haute Regional Hospital	Target	Company	Hospital involved in a merger application subsequently withdrawn.
Risant Health	Bidding Company	Company	Nonprofit organization created by Kaiser Foundation Hospitals, acquired Cone Health.
Cone Health	Target	Company	A health system based in Greensboro, N.C.
Rady Children's Hospital	Bidding Company	Company	Pediatric health system involved in a merger with Children's HealthCare of California.
Children’s HealthCare of California	Target	Company	Pediatric health system including Children's Hospital of Orange County.
Orlando Health	Bidding Company	Company	Acquirer of majority ownership in Brookwood Baptist Health.
Tenet Healthcare	Selling Company	Company	Seller of majority ownership in Brookwood Baptist Health to Orlando Health.
Brown University Health	Bidding Company	Company	Acquired Morton and Saint Annes Hospitals for integration into their health system.
Astrana Health	Bidding Company	Company	Acquirer of select assets and business of Prospect Health System.
Prospect Health System	Selling Company	Company	Seller of California-licensed healthcare service plan and other assets to Astrana Health.
Summa Health	Target	Company	Health system in Akron, Ohio, acquired by General Catalyst's HATCo.
General Catalyst	Bidding Company	Company	Private equity firm acquiring Summa Health through its Health Assurance Transformation company.
Krohn Clinic	Merging Company	Company	Part of the merger with Black River Memorial Hospital to form Black River Health.
Black River Memorial Hospital	Merging Company	Company	Part of the merger with Krohn Clinic to form Black River Health.