New Jersey has joined a proposed settlement to address antitrust concerns over UnitedHealth Group Inc.’s planned $3.3 billion acquisition of Amedisys, Inc. The agreement, which also includes the U.S. Department of Justice and three other states, would require UnitedHealth to divest 164 home health and hospice facilities in 19 states. This includes three home health locations in New Jersey, with two additional sites to be sold if regulatory approvals are not obtained for related divestitures.
The total revenue from the divested assets is about $528 million annually, making this one of the largest outpatient healthcare service divestitures resulting from a merger challenge.
Attorney General Matthew J. Platkin said, “Preserving competition in home health services is incredibly important for New Jerseyans who need real choices when they seek care during the most vulnerable moments of their lives. Unchecked, anti-competitive behavior damages patients and healthcare workers, and I am glad this acquisition will be modified to preserve patient choice and market competition.”
The settlement requires UnitedHealth to appoint a monitor overseeing both asset sales and compliance with the consent decree. The agreement also mandates that buyers receive necessary assets, staff, and relationships to effectively compete with UnitedHealth in overlapping markets.
After publication in the Federal Register as required by the Tunney Act, there will be a 60-day period for public comment on the proposed settlement. Written comments should be sent to Jill Maguire at the Antitrust Division of the U.S. Department of Justice.
A final judgment may be entered by the U.S. District Court for the District of Maryland if it finds that approving the settlement serves the public interest.
Maryland, Illinois, and New York have also joined New Jersey and federal authorities in supporting this resolution.
Leslie Prentice and Yale Leber represented New Jersey’s interests under supervision within the Division of Law’s Affirmative Civil Enforcement Practice Group.
