UnitedHealth asks judge to dismiss challenge to Amedisys merger

UnitedHealth Group has asked a federal judge to dismiss the Justice Department's challenge to its acquisition of Amedisys, or require the department to provide more specific data on how the deal could harm competition. 

In a motion filed Jan. 8 in the district of Maryland, attorneys for UnitedHealth Group and Amedisys argued that the Justice Department did not specify the geographic areas in which competition would decrease as a result of the merger. 

The Justice Department's allegations that the merger would decrease competition in "hundreds of local home health markets" are too vague to base an antitrust challenge on, according to UnitedHealth Group's memorandum. 

Attorneys for UnitedHealth Group argued that if the Justice Department does not refine the geographic markets it alleges will be harmed by the merger, the case should be dismissed. 

"[UnitedHealth] and Amedisys acknowledge that it is unusual to file for dismissal in a merger challenge brought by government antitrust enforcers," attorneys for the companies wrote. 

The Justice Department filed a lawsuit challenging the proposed $3 billion merger in November, alleging the merger could increase home healthcare prices in 23 states. The attorneys general of Maryland, Illinois, New Jersey and New York also joined the challenge. 

UnitedHealth Group first said it planned to acquire Baton Rouge, La.-based Amedisys in 2023. The company provides home health, hospice and high-acuity care services in 500 centers in 37 states. 

In 2023, UnitedHealth Group acquired LHC Group, a home health firm with more than 900 facilities. If its acquisition of Amedisys is approved, UnitedHealth would own around 10% of the home health market. 

In June 2024, Amedisys and UnitedHealth agreed to divest an undisclosed number of clinics to VitalCaring Group. In a regulatory filing published Jan. 8, Amedisys said they had terminated the deal. 

In its motion to dismiss, attorneys said a search process to identify new buyers for the clinics is underway. 

"In an effort to alleviate concerns from antitrust regulators, UHG is pursuing a robust divestiture that will maintain, and even enhance, competition in certain metropolitan areas," attorneys wrote. 

Copyright © 2025 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like