Amedisys US Settlement Left Some Concerns Unresolved, Shows Flexibility on Remedies

Antitrust attorney Kenneth Racowski was quoted in an MLex article on a settlement allowing UnitedHealth Group to acquire Amedisys, a rival in the home healthcare and hospice service provider space. The agreement with the U.S. Department of Justice (DOJ) and four states that had sued to prevent the transaction involved divesting some overlapping assets to address concerns about decreased competition and unlawful market control. Mr. Racowski pointed out an interesting aspect of the settlement, which is that one of the divestiture buyers is a public company formerly controlled by a private equity firm. He shared that allowing private equity into the healthcare industry, even indirectly, marks a contrast from the stance taken by the previous administration.

"The Biden Administration had targeted private equity as a business model, and sort of let it be known that they disfavored healthcare buyers in the private equity space," he said. "So I'd be watching going forward if this is going to accelerate healthcare deals that then are resolved, if they're challenged, along the model that was employed here."

READ: Amedisys US Settlement Left Some Concerns Unresolved, Shows Flexibility on Remedies (Subscription required)