U.S. Justice Department Moves to Block UnitedHealth's Amedisys Acquisition

(Reuters) – The U.S. Justice Department is moving to block UnitedHealth Group (NYSE: UNH)'s $3.3 billion purchase of Amedisys Inc (NASDAQ: AMED) due to antitrust concerns regarding competition in the home health services market, as reported by Bloomberg News.

According to unnamed sources, antitrust officials are prepared to file a lawsuit in federal court this week to halt the acquisition. This action follows recent discussions between UnitedHealth executives and the Justice Department in an attempt to alleviate the government’s concerns regarding the merger.

Both Amedisys and UnitedHealth have not responded to requests for comments from Reuters, and the Justice Department declined to comment on the matter.

UnitedHealth proposed acquiring Amedisys last year, but analysts were wary, predicting challenges from the Federal Trade Commission due to UnitedHealth’s involvement in home health services.

This acquisition attempt follows UnitedHealth's acquisition of LHC Group (NASDAQ: LHCG) for approximately $5.4 billion in 2022, aimed at strengthening its home healthcare market presence.

Previously, the Justice Department had also attempted to block UnitedHealth's purchase of Change Healthcare (NASDAQ: CHNG) in February 2022, though that transaction was ultimately completed later that year.

Alongside its insurance division, UnitedHealth runs the Optum health services arm which manages physician groups and other healthcare assets.

On Tuesday morning, UnitedHealth's shares declined by 1.7%, while Amedisys’ stock saw a slight decrease.