An acquisition of one major health care company of another is nearing the end of a legal challenge from the Department of Justice and several state attorneys general, including New York Attorney General Letitia James.
United Healthcare, through its health services arm Optum, announced in June 2023 that it would purchase Amedisys, a home health and hospice care provider for $3.3 billion. However, the DOJ and several states brought the companies to court, arguing it would violate antitrust and monopoly laws.
Amedisys operates over 500 facilities around the country, including two in Western New York. One in Niagara Falls and one in Williamsville. United Healthcare also has a physical presence with several locations in the region.
Due to overlap of services and interests, which includes palliative care and programs to manage respiratory and heart diseases, the government argued an acquisition with no conditions would lessen competition and quality for patients.
“When big corporations dominate our health care markets, they can cut services and raise prices without fear of losing money, putting New Yorkers in need at serious risk,” said Attorney General James. “Fair competition helps ensure that New Yorkers can get affordable, quality health care wherever they live. Seniors and other vulnerable New Yorkers’ lives depend on access to quality home care services, and today we are preventing United and Amedisys from jeopardizing those services.”
The proposed settlement by the Justice Department would force the two companies to sell off overlapping facilities and assets to other competitors across 19 states. As part of the terms, United would sell Willcare Home Health locations in Wellsville, Jamestown and Amherst to BrightSpring Health Services.
In addition, Amedisys would pay a $1.1 million civil penalty to the United States government for allegedly falsely certifying that it had provided “true, correct, and complete” responses under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.
