New Jersey joins federal settlement requiring UnitedHealth to divest home health facilities in $3.3B acquisition of Amedisys
TRENTON, N.J. — New Jersey, along with three other states and the U.S. Department of Justice, has reached a proposed settlement to resolve a challenge to UnitedHealth Group Inc.’s $3.3 billion acquisition of Amedisys, Inc., Attorney General Matthew J. Platkin announced Thursday.
Under the agreement, UnitedHealth must sell 164 home health and hospice locations, including one affiliated palliative care facility, across 19 states. The divestitures include three home health locations in New Jersey, with two additional New Jersey facilities to be sold if regulatory approvals for certain associated locations cannot be obtained. In total, the divestitures represent about $528 million in annual revenue.
By number of facilities, officials said, the settlement secures the largest divestiture of outpatient healthcare services to resolve a merger challenge.
“Preserving competition in home health services is incredibly important for New Jerseyans who need real choices when they seek care during the most vulnerable moments of their lives,” Platkin said. “Unchecked, anti-competitive behavior damages patients and healthcare workers, and I am glad this acquisition will be modified to preserve patient choice and market competition.”
The proposed settlement would also require UnitedHealth to appoint a monitor to oversee the asset sales and compliance with the consent decree. UnitedHealth must provide buyers with assets, personnel, and relationships necessary to compete in the affected areas.
The settlement, along with a competitive impact statement, will be published in the Federal Register, with a 60-day public comment period. Written comments may be sent to Jill Maguire, Acting Chief of the Healthcare and Consumer Products Section at the DOJ’s Antitrust Division.
The U.S. District Court for the District of Maryland will review the settlement and may approve it if it is deemed in the public interest.
Maryland, Illinois, and New York also joined the DOJ and New Jersey in the agreement.
