Report: Amedisys-UnitedHealth Group is nearing a significant divestiture bundle
A brand new report claims that house care large Amedisys Inc. (Nasdaq: AMED) and UnitedHealth Group (NYSE: UNH) are nearing a big divestiture bundle to assist sidestep regulators' antitrust issues.
UnitedHealth Group and its Optum unit final yr introduced a $3.3 billion deal to amass Baton Rouge, Louisiana-based Amedisys, luring the house well being firm away from earlier suitor Choice Care Well being (Nasdaq: OPCH). For the reason that deal was introduced, UnitedHealth Group has confronted rising strain from each particular person lawmakers and federal regulators.
Particularly, the new report comes from The Capitol Discussion board, a information group protecting antitrust, merger management, company investigations and associated subjects.
In that report, The Capitol Discussion board alleges that UnitedHealth Group and Amedisys have a plan to divest “greater than 100 areas” to a non-public equity-backed purchaser. The Capitol Discussion board beforehand reported that UnitedHealth Group was making an attempt to promote 87 areas.
Inventory market advisory and evaluation service In search of Alpha additionally picked up the information, noting that Amedisys shares rose 2% in gentle of the event.
At the moment, it’s unclear precisely the place these areas could be, and whether or not these facilities present house care or hospice companies – or each.
Neither Amedisys nor UnitedHealth Group responded to a request for touch upon the matter from House Well being Care Information, and HHCN was unable to independently confirm the Capitol Discussion board's reporting. HHCN beforehand explored what an Amedisys divestment technique might appear to be as a part of an HHCN+ Replace.
Amedisys had 346 house care facilities in 34 states and Washington, DC, on the finish of the primary quarter of 2024, in accordance with a presentation from firm buyers. On the finish of the primary quarter, there have been 165 hospice facilities in 31 states.
Amedisys divested its private care enterprise in March 2023.
A separate, earlier word from monetary companies agency Jefferies not too long ago famous that Amedisys management was certainly weighing divestiture choices. In that word, Jefferies analysts additionally maintained that they anticipated the deal between UnitedHealth Group and Amedisys to shut within the coming months.
For the complete yr 2023, house care firm Amedisys had web companies income of roughly $1.4 billion.
Contextually, the deal between UnitedHealth Group and Amedisys has confronted elevated strain from regulators as a result of UnitedHealth Group additionally owns LHC Group – one other large inside the nonetheless fragmented house care trade.