DOJ Reportedly Delays Lawsuit Decision On UnitedHealth Group-Amedisys Deal

Amedisys (Nasdaq: AMED) and UnitedHealth Group (NYSE: UNH) leaders were reportedly set to meet with officials from the U.S. Department of Justice (DOJ) this week over their pending deal. The DOJ’s decision on whether to file a lawsuit to block the deal, however, has now reportedly been postponed until after the Nov. 5 presidential election.

CTFN first reported the news, citing anonymous sources “close to the deal” and anonymous attorneys.

In general, the “last-rites” meeting being set at all seemed to suggest – to some extent – that the deal was less likely to go through than previously thought. But unlike in the past, last-rites meetings have not always preceded lawsuits in recent years.

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The latest news on the decision being postponed changes things, however. The DOJ had a deadline of Oct. 31 to file a lawsuit to block UnitedHealth Group’s acquisition of Amedisys. Therefore, a lawsuit becomes less likely with the postponement, but not impossible.

“It is still possible that the merging parties and the DOJ can come to an agreement that allows the merger to proceed, according to the first and second sources,” CTFN wrote. “The first source maintains that no decision has yet been made, while the second source said they believe it is more likely than not that the merger is consummated without the need for litigation. Should, however, the DOJ choose to challenge the merger, UnitedHealth is expected to stick through litigation of the matter.”

In other words, no matter what the DOJ decides to do, UnitedHealth Group plans to fight for the Amedisys deal to go through. But DOJ leadership could also look different in a few months based on the result of next week’s election.

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UnitedHealth Group’s provider services arm, Optum, agreed to acquire Amedisys for $3.3 billion in June of last year.

Based in Baton Rouge, Louisiana, Amedisys has 521 care centers in 37 states and the District of Columbia. It offers home health, hospice, palliative and home-based high-acuity care.

UnitedHealth Group and Amedisys did not respond to a request for confirmation from Home Health Care News on the DOJ postponing its decision.

Bloomberg was the first to report on the proposed meeting between Amedisys, UnitedHealth Group and the DOJ.

UnitedHealthcare – UnitedHealth Group’s insurance arm – is the largest Medicare Advantage (MA) administrator in the country. Additionally, Optum already owns the home health giant LHC Group, which it acquired for $5.4 billion in February of 2023

In order to mitigate antitrust concerns, Amedisys previously agreed to divest a certain amount of its locations to the PE-backed home health provider VitalCaring. The exact number of locations has not been settled, but it could be over 100, according to previous reports. That deal will only take effect if the UnitedHealth Group takeover of Amedisys goes through.

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