The United States Department of Justice is suing to block UnitedHealth Group‘s $3.3 billion acquisition of Amedisys, arguing that it would harm competition.
The DOJ claims that the deal, which values Amedisys at $101 a share, would give UnitedHealth excessive control over healthcare services, according to the Wall Street Journal.
“Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses,” Assistant Attorney General Jonathan Kanter said.
UnitedHealth was allegedly already on the road to creating a monopoly, after last year buying one of Amedisys’ competitors, LHC Group.
UnitedHealth also owns the country’s largest health insurer, UnitedHealthcare. It also owns Optum, an expansive network of clinics and physicians.
The DOJ’s complaint was filed along with several states including Maryland, Illinois, New Jersey and New York.
UnitedHealth addressed the accusations by proposing to divest some assets, but the DOJ remained focused on preventing further consolidation in the healthcare sector.
The DOJ has a long-running history with UnitedHealth Group. Currently, the DOJ is investigating UnitedHealth’s relationships between its insurance and Optum. In 2022, when UnitedHealth Group attempted to buy Change Healthcare for $8 billion the DOJ sued to block the deal.
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