Amedisys (Nasdaq: AMED) exceeded Wall Street expectations in its first-quarter results for 2025. The company’s home health segment benefited from increased volume and higher rates, while its high-acuity care segment reached a milestone with record admissions.

However, Amedisys stock remained relatively flat amid ongoing scrutiny of the Baton Rouge, Louisiana-based company’s proposed merger with UnitedHealth Group (UHG) (NYSE: UNH), which is currently under investigation by the U.S. Department of Justice (DOJ) for potential antitrust issues.

The company reported net Q1 revenue of $594.8 million, a 4.1% increase from the previous year, alongside a notable 21.4% rise in adjusted earnings per share. Amedisys also reported net income of $61 million and adjusted EBITDA of $68.8 million, an increase from $59.9 million in 2024.

In Q1, Amedisys’ home health services generated net service revenues of $372.1 million, marking a 5.8% year-over-year increase. Medicare revenues totaled $212.1 million within this segment, a 2.7% decline from the previous year. 

Non-Medicare revenues experienced nearly a 20% year-over-year increase, reaching $160 million. Amedisys’s high-acuity care segment reported net service revenues of $7.7 million, up from $4.4 million in Q1 2024.

UHG Merger update

In early April, Home Health Care News reported that the DOJ lawsuit against Amedisys and UHG will go to mediation on Aug. 18.

The DOJ sued the companies in November 2024 to block UHG subsidiary Optum from acquiring Amedisys following Optum’s agreement to purchase the company in June 2023 for $3.3 billion. Last summer, the DOJ initiated an investigation into the deal.

The DOJ reports that its primary concern is the potential for reduced competition in the home health and hospice sectors. According to the lawsuit, if the merger is completed, Optum could control over 30% of home health and hospice services in eight states. This deal would also expand Optum’s presence into five additional states.

UnitedHealth Group (UHG) is one of the largest companies in the country, with various associated business lines. Optum owns LHC Group, a major player in home-based care.

This is not the end of UHG’s legal troubles. In February, the DOJ initiated a civil fraud investigation into the company’s practices for recording diagnoses that trigger extra payments to its Medicare Advantage (MA) plans.

UHG’s UnitedHealthcare is the largest MA provider in the U.S., accounting for 29% of total MA enrollment in 2024, according to KFF.