Merger Challenge Hits Home (Health Care): DOJ, States Move to Prevent Merger of UnitedHealth Group and Amedisys

Antitrust attorney Bill Katz authored an article for the American Bar Association analyzing a government challenge to a proposed merger involving one of the country's largest home health and hospice service providers. Last month, the U.S. Department of Justice (DOJ), along with several states, filed a lawsuit to block UnitedHealth Group (United) from combining with Amedisys, alleging the transaction would violate Section 7 of the Clayton Act and that Amedisys separately violated the Hart-Scott-Rodino (HSR) Act. The DOJ and state plaintiffs contend the merger would suppress competition by consolidating much of the home health and hospice services market under United; they also argue the company would gain at least a 30 percent market share in some areas, which is deemed anticompetitive under the 2023 Merger Guidelines. Additionally, they posit the merger would adversely affect skilled nurses, who are key components in the home health and hospice ecosystem. As to the HSR violations, the DOJ claims Amedisys knowingly certified its Second Request submission complied with the law when it was actually incomplete, and that the company acted to fix the problems only after the DOJ found them. Mr. Katz notes the case represents the latest effort to prevent horizontal and vertical consolidation in the healthcare industry as well as that the DOJ's move to seek civil monetary penalties for HSR violations is a shift from past investigations.

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