The Department of Justice has taken legal action against UnitedHealth Group and Amedisys over their proposed merger, citing concerns about potential anticompetitive behavior.
UnitedHealth and Amedisys are both major players in the home health and hospice industry, with Amedisys holding the title of the largest company in the sector as of 2022. The DOJ’s lawsuit, filed in federal court in Maryland on November 12, alleges that the merger between the two companies would eliminate competition between them, giving UnitedHealth control of more than 30% of home health and hospice services in eight states.
Furthermore, the proposed merger would also result in the nation’s top three home health providers being owned by the two largest Medicare Advantage insurers in the country, UnitedHealthcare and Humana. This consolidation of power in the hands of a few key players raises concerns about the potential impact on competition and patient care.
The lawsuit argues that under antitrust laws, the proposed merger is inherently anticompetitive and illegal. The United States, along with the attorneys general of Maryland, Illinois, New Jersey, and New York, are seeking to prevent the merger and impose civil penalties on both Amedisys and UnitedHealth for their roles in the deal.
UnitedHealth’s aggressive growth strategy, which includes acquisitions in sectors catering to an aging population, has raised eyebrows in the industry. The company’s recent acquisitions of LHC Group and Amedisys are seen as moves to solidify its dominance in the healthcare market.
The lawsuit also highlights concerns about the impact of the merger on the skilled nursing workforce, as UnitedHealth and Amedisys are major competitors for staff. The competition between the two companies has historically driven better quality care for patients, and the potential loss of this dynamic is a cause for concern.
Despite proposed divestitures of assets to VitalCaring Group, the lawsuit argues that these measures do not adequately address the competitive overlap and potential harm to healthcare workers in multiple markets. The DOJ is pushing for a thorough examination of the merger’s potential impact on competition and patient care before allowing it to proceed.
This legal action is part of a larger trend of consolidation in the healthcare industry, with UnitedHealth making significant acquisitions in various sectors over the past few years. The company’s growing influence across multiple aspects of healthcare has raised questions about the level of competition and choice available to consumers.
In conclusion, the lawsuit against UnitedHealth Group and Amedisys underscores the importance of maintaining competition in the healthcare industry to ensure quality care and choices for patients. The outcome of this legal battle will have far-reaching implications for the future of the home health and hospice sector.
