The two companies are two of the largest providers of home health and hospice services
of ConsumerAffairs
The U.S. Department of Justice, along with the attorneys general from Maryland, Illinois, New Jersey, and New York, has filed a civil antitrust lawsuit to prevent UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys Inc.
This legal action, initiated in the District of Maryland, argues that the merger would significantly reduce competition in the home health and hospice services sector, ultimately harming patients, insurers, and healthcare workers.
UnitedHealth and Amedisys are two of the largest providers of home health and hospice services in the United States. The Justice Department contends that merging these entities would eliminate vital competition. Attorney General Merrick B. Garland said it is important to maintain competitive markets to protect vulnerable patients and healthcare workers from monopolistic practices.
Principal Deputy Associate Attorney General Benjamin C. Mizer said the Justice Department is committed to preventing mergers that could compromise the quality and affordability of healthcare services.
Growing influence
Assistant Attorney General Jonathan Kanter expressed concerns about UnitedHealth's growing influence in the healthcare sector, warning that the merger could jeopardize the well-being of seniors, their families, and nurses.
The lawsuit said that home health and hospice services play a significant role in the American healthcare system. It said these services are essential for patients recovering from hospitalizations or managing chronic conditions at home, as well as providing comfort to terminally ill patients and their families.
The complaint said the competition between UnitedHealth and Amedisys has been instrumental in driving quality improvements and maintaining fair wages for healthcare workers, arguing that they should remain competitors and not join forces.
The complaint also addresses UnitedHealth's proposal to divest certain facilities to VitalCaring Group to mitigate competitive overlaps. However, the Justice Department argues that this divestiture fails to resolve competition concerns in over 100 markets, affecting a significant number of patients and healthcare workers.
Additionally, the lawsuit seeks civil penalties against Amedisys for allegedly violating the Hart-Scott-Rodino Antitrust Improvements Act by failing to disclose critical documents. The Justice Department is pursuing monetary penalties for each day of non-compliance.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-13 13:17:44
