UnitedHealth-Amedisys Merger Cleared After DOJ Settlement and Divestiture

UnitedHealth Group Incorporated (NYSE:UNH) is one of the best high-volume stocks to invest in. On August 7, UnitedHealth and Amedisys Inc. (NASDAQ:AMED) reached a settlement with the Department of Justice/DOJ and 4 states, clearing the way for their $3.3 billion merger. The settlement, which was filed in a Maryland district court, addresses antitrust concerns raised by the DOJ and the plaintiff states, which had sued to block the merger in November 2024.

To proceed with the acquisition, UnitedHealth and Amedisys must divest 164 home health and hospice locations across 19 states. This is considered the largest divestiture of outpatient sites to settle a merger challenge ever, and these businesses represent roughly $528 million in annual revenue. BrightSpring Health Services will acquire 115 of these sites, while Pennant Group will acquire the remaining 49. The settlement also requires UnitedHealth to divest 8 additional locations if it fails to secure regulatory approval for the agreed-upon divestitures.

In addition to the divestiture requirements, Amedisys has agreed to pay a $1.1 million civil penalty to the US government. The penalty is for not fully complying with regulators during the merger review process, as Amedisys had falsely certified that it had provided complete and truthful information in response to federal inquiries. The settlement is not yet final and is pending approval from a Maryland district judge after a period for public comment.

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company in the US and internationally. It operates through 4 segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

Amedisys Inc. (NASDAQ:AMED) provides healthcare services in the US and operates through 3 segments: Home Health, Hospice, and High Acuity Care.

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Disclosure: None. This article is originally published at Insider Monkey.