UnitedHealth Group has finally gotten federal approval to buy home health and hospice company Amedisys.
It’s a bit of positive news after months of financial struggle for the vertically integrated healthcare goliath.
The Department of Justice (DOJ) sued to block the $3.3 billion buy on Nov. 12 alongside the attorneys general of Maryland, Illinois, New Jersey, and New York. They argued it would eliminate competition between the companies, two of the largest home and hospice care providers in the country.
Then-US Attorney General Merrick Garland said in a statement at the time this “unlawful consolidation and monopolization” would threaten “vulnerable patients, their families, and healthcare workers.” The suit said that if the merger proceeded in its original form, UnitedHealth would control 30% or more of home health or hospice services in eight states.
But on Aug. 7, the DOJ proposed a settlement allowing the merger to go forward. United and Amedisys just have to sell off 164 home health and hospice locations across 19 states, which account for about $528 million in revenue—a small portion of United’s worth.
The proposed settlement also added provisions like appointing a monitor to ensure UnitedHealth and Amedisys stick to the plan.
United had around a $271 billion market cap as of Wednesday at 12pm ET after getting up to a nearly $600 billion market cap in April.
Navigate the healthcare industry
Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.