On Thursday, the Amedisys (NASDAQ: AMED) announced that the U.S. Department of Justice (DOJ) and Maryland Attorney General, Illinois, New Jersey and New York have proposed final rulings regarding the UnitedHealth Group (NYSE: UNH) to develop plans for Amedisys.
UnitedHealth and Amedisys agreed to the proposed final ruling. This would resolve opposition to the DOJ and state merger if approved.
The proposed ruling calls for the sale of at least 164 home sanitation and hospice facilities, including at least 164 home health facilities, including approximately $528 million worth of affiliated palliative care facilities in 19 states, to United Health and Amedisys, according to a DOJ release. It also imposes a $1.1 million civil penalty on Amedisys for “mistakes certifying that the company has responded honestly, correctly and perfectly to the US document request.”
“Our economy sector has no more competition than health care than American health,” Abigail Slater, assistant adviser of the Department of Justice's antitrust division, said in a statement. “This settlement protects the quality and price competition for hundreds of thousands of vulnerable patients and the wage competition for thousands of nurses. I commend the staff of the Antitrust Division for stubbornly investigating and prosecuting the case on behalf of seniors, hospice patients, nurses and their families.”
The proposed settlement requires UnitedHealth to sell the eight additional facilities if it fails to obtain regulatory approval for the sale of 164 facilities without the additional eight locations. Monitors will be imposed to oversee UnitedHealth's sale and compliance.
The order also provides buyers of sold facilities with “assets, personnel and relationships to compete with UnitedHealth in overlapping areas.” It incorporates “robust protection to enhance compliance” into the proposed final decision to prevent interference with buyers' competitive capabilities.
In addition to requiring Amedisys to pay a civil penalty of $1.1 million, the proposed settlement would require the company to train corporate and field leadership in antitrust compliance.
A sale is required within 75 days of the court entering into the preservation of the property, and is required to retain separate provisions and orders or within 60 days of the required merger permit under Indiana and West Virginia laws.
The proposed judgment will be subject to judicial approval under the Antimonopoly and Penalties Act and will be subject to certain conditions.
Based in Baton Rouge, Louisiana, Amedisys offers home hygiene, hospice, palliative and home-based high vision care, and operates 522 care centers in 37 states.
DOJ appealed to block UnitedHealth's acquisition of Amedisys in 2024, calling the deal “presumably anti-competitive and illegal.”
“We are challenging this merger because home health and hospice patients and their families are experiencing the most challenging moments of their lives, which is why affordable, high-quality care options are deserving,” former U.S. Attorney General Merrick B. Garland said at the time. “The Department of Justice will not hesitate to confirm illegal integration and monopoly in the healthcare market that could harm vulnerable patients, their families and healthcare workers.”
The DOJ case was scheduled to go to mediation on August 18th.
