UPDATED: 10:30 a.m. ET on Nov. 12
Despite meeting with executives looking to avert potential litigation, the Department of Justice is planning to intervene in UnitedHealth Group's acquisition of home health company Amedisys.
Bloomberg reported that the agency is preparing a lawsuit that could be filed in court as early as this week that seeks to block the deal. Antitrust regulators are worried that the combination could drive up prices in home health, according to the report.
The outlet reported that to soothe skittish regulators the two companies offered to sell off more than 100 clinics, but evidently that was not enough to ease their concerns.
Should DOJ seek to block the deal, it would mark the second time that the Biden administration has sought to intervene in a UnitedHealth Group acquisition. DOJ also unsuccessfully challenged the healthcare giant's move to scoop up health tech company Change Healthcare.
Shares in UHG and Amedisys were both down by about 1.5% mid-morning on Tuesday.
Leaders at UnitedHealth Group and Amedisys are set to meet with the Department of Justice (DOJ) this week in hopes of avoiding a potential attempt to block their $3.3 billion merger deal, according to media reports.
Bloomberg reported that the "last rites" meeting is generally the last step before regulators decide whether to intervene in a deal. It's possible that the antitrust enforcers will allow the two companies to move forward with the deal with some changes that address competition concerns, according to the article.
People familiar with the matter told Bloomberg there has been no definitive decision to challenge the deal. The DOJ will need to make a choice by the end of the month, based on an arrangement with UHG and Amedisys, according to the article.
The DOJ first began investigating the deal in August 2023, seeking additional information into the potential combination.
UnitedHealth outbid several competitors to scoop up Amedisys, with the deal first coming to light in late June 2023. Should the deal go through, Amedisys would be folded into UHG's Optum unit.
In July, Amedisys said it would make several strategic divestitures to help the deal along, and the companies expected the merger to close in late 2024. Analysts said at the time that given the divestiture there was "minimal risk" that the deal did not come to fruition.
The Biden administration has put a focus on antitrust enforcement of late, and the DOJ is conducting a separate investigation into UnitedHealth's broader enterprise.