On Wednesday, a district court finalized the U.S. Department of Justice's (DOJ) settlement of UnitedHealth Group's (NYSE: UNH) acquisition of Amedisys.
The settlement, approved by the U.S. District Court for the District of Maryland, resolves objections to the merger by the Department of Justice and four states. The proposed settlement requires the companies to sell at least 164 home health and hospice locations, representing approximately $528 million in annual revenue, the largest number of outpatient facilities ever required to resolve the merger.
Additionally, the merger will require Amedisys to pay a $1.1 million civil penalty for false certification.
“This is a huge win for competition in the health care industry, which itself is critical to the public interest and well-being of Americans,” Assistant Attorney General Abigail Slater of the Justice Department's Antitrust Division said in a statement. “I commend the Antitrust Division staff who prosecuted this case through contentious litigation to reach this settlement on behalf of seniors, hospice patients, nurses and their families.”
The proposed settlement announced in August also includes:
– Requires UnitedHealth to sell eight additional locations if regulatory approval to sell without additional locations is obtained
– Impose a monitor to monitor the sale and UnitedHealth’s compliance with the consent decree.
– Provide the buyers of the divested facilities with the assets, talent and relationships that enable them to compete with UnitedHealth in overlapping markets.
– Adds “strong protections” to strengthen compliance and deter interference with buyers’ ability to compete.
– Requires Amedisys to train corporate and field leaders on antitrust compliance
UnitedHealth's $3.3 billion acquisition of Amedisys was completed in August after two years of turmoil complicated by antitrust concerns. The Department of Justice filed a lawsuit in 2024 seeking to block the deal, arguing that it is “presumably anticompetitive and illegal.”
In May, the companies entered into an agreement to sell the home health and hospice locations to Pennant Group (NASDAQ: PTNG) and BrightSpring Health Services (NASDAQ: BTSG).
Pennant acquired 54 locations in Tennessee, Georgia and Alabama for $146.5 million. The company said the deal, signed in October, allows it to create a “center of strength” in the Southeast and is currently consolidating its facilities.
Four BrightSpring affiliates acquired an undisclosed number of locations. Company executives said in October that the acquisition was expected to close in the fourth quarter.
Amedisys had previously planned to sell the stores to home health and hospice provider Vital Caring, but a federal court later blocked the deal.
