WASHINGTON, D.C. – The U.S. Department of Justice (DOJ) is considering initiating a lawsuit to impede the acquisition of Amedisys by Optum, a subsidiary of the UnitedHealth Group, as reported by SeekingAlpha. Shares of Amedisys fell 0.6% upon hearing the news. The agreement for Optum’s acquisition of Amedisys, worth $3.3 billion or $101 per share, was made in June 2023 and is expected to be finalized this year.
The DOJ commenced an investigation into potential antitrust issues relating to the Amedisys-Optum deal last summer. However, neither Amedisys nor Optum have faced any accusations of misconduct thus far. The DOJ previously launched a similar investigation and filed a lawsuit when Optum acquired Change Healthcare, a healthcare technology company, but the deal was ultimately permitted by a federal court.
According to the Wall Street Journal, federal regulators are now conducting an even more thorough examination into the matter. Since February, investigators have been engaging with representatives from different sectors of the healthcare industry, including doctor groups, to gain insights into UnitedHealth’s competition. Specifically, discussions have focused on the connections between UnitedHealthcare, the insurance business of the company, and Optum Health.
It is worth noting that Optum has previously completed a $5.4 billion transaction with LHC Group, a home health and hospice provider, further solidifying its position in the market. Amedisys, on the other hand, displayed growth in its net service revenue during the fourth quarter of 2023, reaching $570.8 million compared to $562 million in the same period the previous year. Revenue within its hospice segment also experienced a boost, rising from $186.3 million in Q4 2022 to $194.2 million in Q4 2023.
The DOJ’s contemplation of legal action against the acquisition raises concerns about the potential impact on the healthcare industry and competition within it. As the investigation unfolds, it remains to be seen how this case will ultimately unfold and whether the acquisition will proceed as planned.