State AGs and DOJ Sick Over Planned Health Care Merger

Cozen O'Connor
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  • The Maryland, Illinois, New Jersey, and New York AGs and the U.S. DOJ have sued to block the acquisition of Amedisys, Inc. by UnitedHealth Group Incorporated (“UnitedHealth”), alleging that it would violate Section 7 of the Clayton Act.
  • The complaint alleges that Amedisys and UnitedHealth, as two of the nation’s largest providers of home health and hospice services, are each other’s primary competitors in certain markets—both in providing services and employing nurses—and that the acquisition would cause increased prices for patients and lower pay and benefits for their employees. The complaint further alleges that the divestitures proposed by the companies are inadequate to resolve these threats to competition.
  • The lawsuit seeks a court order blocking the merger, civil penalties for Amedisys’ alleged failure to fully comply with the Hart-Scott-Rodino Act in seeking merger approval, and costs and fees, among other relief.

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