The U.S. Department of Justice’s Antitrust Division proposed a settlement that would require the company to make broad divestitures as part of its $3.3 billion acquisition of Amedisys Inc.
As part of the settlement, Amedisys would pay a $1.1 million civil penalty for falsely certifying it had provided “true, correct and complete” responses under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act. The settlement would require UnitedHealth to divest home health and hospice facilities, officials said.
“In no sector of our economy is competition more important to Americans’ well-being than healthcare. This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses,” Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division said. “I commend the Antitrust Division’s Staff for doggedly investigating and prosecuting this case on behalf of seniors, hospice patients, nurses, and their families.”
Officials said the settlement would require UnitedHealth and Amedisys to divest 164 home health and hospice locations, and one affiliated palliative care facility, in 19 states. Combined the facilities total some $528 million in annual revenue. The settlement would secure the largest divestiture of outpatient healthcare services to resolve a merger challenge, officials said.
Additionally, the proposal will obligate UnitedHealth to divest an additional eight locations if it fails to obtain regulatory approval for the initial divestiture and impost a monitor to supervise UnitedHealth’s compliance and provide the divestiture buyers with the assets, personnel and relationships to compete against UnitedHealth in the overlap areas.