Amedisys Stock Falls as DOJ Sues to Block $3.3B Sale to UnitedHealth

DOJ alleges UnitedHealth misrepresented market power in deal to acquire Amedisys

Shares of Amedisys Inc. fell sharply on Tuesday after the U.S. Department of Justice sued to block the company's $3.3 billion sale to UnitedHealth Group Inc., alleging that the deal would give UnitedHealth too much market power in the home health care market.

In a complaint filed in federal court in Washington, D.C., the DOJ said that the merger would "substantially lessen competition" in the home health care market, which provides in-home nursing, therapy, and other services to patients.

The DOJ alleged that UnitedHealth, which is the largest health insurer in the United States, has a significant market share in the home health care market through its OptumHealth unit.

UnitedHealth has denied the DOJ's allegations

UnitedHealth has denied the DOJ's allegations, saying that the deal would not harm competition in the home health care market.

The company said in a statement that the DOJ's complaint "is based on a fundamental misunderstanding of the home health care market and the role that UnitedHealth plays in it."

UnitedHealth said that the deal would actually increase competition in the home health care market by giving patients more choices and lower prices.

The DOJ's lawsuit is a major setback for the deal

The DOJ's lawsuit is a major setback for the deal, which was announced in July.

The two companies had hoped to close the deal by the end of the year, but the DOJ's lawsuit could delay the closing or even kill the deal altogether.

The DOJ's lawsuit is also a sign that the Biden administration is taking a more aggressive approach to antitrust enforcement.

In recent months, the DOJ has filed lawsuits to block several other mergers, including a proposed merger between AT&T and T-Mobile.