UnitedHealth Group and Amedisys have pushed back the closure date for their $3.3 billion merger as they fend off a federal challenge to the deal.
Home health company Amedisys wrote in a filing with the Securities and Exchange Commission that the two parties had waived their right to terminate the deal because it had not closed by its planned date. The extension could delay closure to December 2025, should the companies prevail in the legal challenge.
The filing also notes that the regulatory break fee for the deal is $275 million.
The Department of Justice filed suit on Nov. 12 to block the merger, arguing that it would stymie competition in the home health space. If the deal were to close, UnitedHealth intends to fold Amedisys into its Optum subsidiary, where it would continue as a wholly-owned subsidiary.
In the lawsuit, the Justice Department said that UHG and Amedisys are currently competitors in home healthcare, and allowing them to merge would "forever eliminate" that competition in a way that could harm patients.
If Amedisys becomes part of UnitedHealth Group, the healthcare giant would grow its home health footprint into five additional states and would add 500 locations in the states where it currently operates.
"UnitedHealth’s plan to extinguish Amedisys as a competitor is the result of an intentional, sustained strategy of acquiring, rather than beating, competition," the DOJ said in the lawsuit.
UnitedHealth disputed the department's arguments, saying the combination "would be pro-competitive and further innovation."