UnitedHealth, Amedisys pitch sale of 100+ clinics amid challenged merger 

UnitedHealth Group and Amedisys have proposed selling a minimum of 128 home health and hospice facilities as part of their efforts to address competitive concerns arising from their $3.3 billion merger. 

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The sale would be part of a divestiture package that aims to alleviate antitrust issues raised by the Department of Justice, which sued over the proposed merger in November. Following the merger, UnitedHealth said it would operate approximately 10% of home health services and 4% of hospice services in the United States, reducing its market share in the sectors.

The merger, which was first announced in June 2023, involves Optum acquiring Baton Rouge-based Amedisys, a provider of home health, hospice, and high-acuity care services. Amedisys, which operates more than 500 centers across 37 states, has already received approval from its shareholders, but the deal has faced significant regulatory hurdles. The DOJ’s lawsuit alleges that the merger would reduce competition in home health services in several markets. The challenge was  joined by several state attorneys general, claiming that the merger could lead to higher prices for home healthcare across 23 states.

In January, UnitedHealth filed a motion to dismiss the DOJ’s challenge, arguing that the government’s allegations about reduced competition in local markets were too vague and should be more specific. 

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