The Justice Division is reportedly making ready a lawsuit to dam the acquisition of Amedisys (Nasdaq: AMED) by UnitedHealth Group (NYSE: UNH).

Bloomberg first reported the information. The report, citing nameless sources, says leaders of Amedisys and UnitedHealth Group met with DOJ officers final week. Nonetheless, that assembly didn’t change the DOJ's thoughts.

UnitedHealth Group's Optum agreed to accumulate Amedisys in June 2023 for $3.3 billion. Since then, DOJ officers – and state governments – have requested extra details about the deal and scrutinized it. That investigation might lastly come to a head this week.

Particularly, the DOJ believes the deal “would hurt competitors within the house well being care companies market,” Bloomberg's sources stated. Optum acquired LHC Group in February 2023 for $5.4 billion. If Optum and Amedisys had been to merge beneath one umbrella, UnitedHealth Group and Optum would personal practically 10% of the house well being care market.

Whereas that's not an enormous slice of the pie, it's the overlap within the markets the place LHC Group and Amedisys each function that reportedly worries the DOJ.

“Antitrust enforcers are involved that the mix might result in increased house well being care costs in areas the place Amedisys is a significant competitor to UnitedHealth's LHC Group,” the Bloomberg report stated.

Amedisys has agreed to divest a few of its places to VitalCaring to keep away from this downside.

This transfer apparently wasn't sufficient within the eyes of the DOJ.

Importantly, that VitalCaring deal will solely shut if the deal between UnitedHealth Group and Amedisys additionally closes.

In complete, Baton Rouge, Louisiana-based Amedisys has 521 care facilities in 37 states and the District of Columbia. It offers excessive acuity house care, hospice, palliative and home-based care. It and LHC Group are two of the most important house care entities within the nation.

If the Amedisys deal goes by means of, Optum could be the most important house well being care supplier within the nation by a big margin.

DOJ officers have gone after UnitedHealth Group over transactions they deemed anticompetitive up to now. The Biden administration particularly has the prolific acquirer in its sights. Though the Biden administration leaves energy in January, the DOJ is reportedly persevering with its efforts to dam the Amedisys deal.