DOJ Challenges UnitedHealth's $3.3B Acquisition of Amedisys Amidst Competition Concerns

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DOJ Challenges UnitedHealth's $3.3B Acquisition of Amedisys Amidst Competition Concerns

The Department of Justice (DOJ), along with several states, has filed a lawsuit in Maryland federal court to block UnitedHealth's proposed $3.3 billion acquisition of Amedisys. The DOJ contends that this merger would significantly suppress competition in the home health services sector, potentially leading to UnitedHealth controlling over 30% of home health and hospice services in eight states[2]. By reducing the competitive landscape, the DOJ argues, the merger could have negative repercussions for patients dependent on these services and could adversely affect employment conditions for nurses[2]. Additionally, the DOJ points to UnitedHealth’s acquisition history, particularly the recent purchase of LHC Group, as evidence of a pattern to diminish competition rather than competing on service quality[2].