The leaders of UnitedHealth Group (NYSE: UNH) and Amedisys (Nasdaq: AMED) will reportedly meet with Justice Division officers within the coming week to debate their pending settlement. The businesses will doubtless make a closing plea as to why the deal ought to go forward because the DOJ considers whether or not to formally file a lawsuit to dam the deal.

Bloomberg first reported on the assembly, which may begin as quickly as Monday, based on sources conversant in the matter.

UnitedHealth Group agreed to accumulate Amedisys in June 2023 for $3.3 billion. Since then, they’ve been ready for approval from the DOJ, which has requested extra details about the deal and thought of a lawsuit early this 12 months.

States have additionally scrutinized the transaction, however would doubtless again the DOJ if it had been to bless the deal.

UnitedHealth Group has an insurance coverage arm, UnitedHealthcare, and a healthcare providers arm, Optum. Optum is particularly buying Amedisys, one of many largest house care suppliers within the nation. Optum additionally owns LHC Group – one other house care big – which it acquired for $5.4 billion in February 2023.

With Amedisys and LHC Group beneath its umbrella, Optum would personal virtually 10% of the house care market.

To handle antitrust issues, Amedisys has agreed to divest a sure variety of its areas to PE-backed house care supplier VitalCaring. The precise variety of areas has not but been decided, however based on earlier experiences it might be greater than 100. That deal will solely take impact if UnitedHealth Group's acquisition of Amedisys goes by.

Amedisys is predicated in Baton Rouge, Louisiana and has 521 healthcare amenities in 37 states and the District of Columbia. It gives excessive acuity house care, hospice, palliative and home-based care.

Based on Bloomberg, Jonathan Kanter may even be current on the upcoming assembly. Kanter is the Assistant Lawyer Basic of the DOJ's Antitrust Division.

It may result in the DOJ proposing extra modifications to the deal, together with vacating extra Amedisys areas. It may additionally find yourself with no decision, which might doubtless result in a DOJ lawsuit. The DOJ should determine by the tip of the month whether or not to file the lawsuit.

General, the deal has raised eyebrows for numerous causes. First, UnitedHealth Group – a prolific acquirer – is already beneath DOJ investigation over antitrust issues.

Within the subject of house care, the sector has traditionally been fragmented. With virtually 10% of the market, Optum could be by far the biggest supplier of house care within the nation.

There are additionally issues about an insurance coverage firm controlling such a big share of the house care market. Those that have raised crimson flags across the deal have recommended it may result in anti-competitive practices.

A commentary on the deal, taken from the Oregon Well being Authority (OHA) web site, aptly summarizes these issues.

“We’re involved about that [UnitedHealth] as an insurer, and thru Optum as a scientific supplier and presumably as a house well being and hospice supplier, have the motivation and skill to unfairly drawback competing suppliers and drive them out of {the marketplace}, thereby limiting client alternative.” the Corvallis, Oregon-based firm stated. Mid Valley Well being Care Advocates wrote.