Justice Department Forces Major Divestitures in UnitedHealth’s $3.3B Amedisys Deal

August 7, 2025 – Washington, D.C.

The U.S. Department of Justice (DOJ) announced today that it has reached a proposed settlement with UnitedHealth Group that will require sweeping divestitures to resolve antitrust concerns over the company’s $3.3 billion acquisition of Amedisys Inc., a major provider of home health and hospice care.

The settlement, filed in federal court, mandates the divestiture of at least 164 home health and hospice facilities across 19 states, and includes a $1.1 million civil penalty against Amedisys for submitting false information during the government’s merger review process.

“In no sector of our economy is competition more important to Americans’ well-being than healthcare,” said Assistant Attorney General Abigail Slater, who leads the DOJ’s Antitrust Division. “This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses.”

If approved by the court, the decree will require UnitedHealth and Amedisys to spin off facilities representing approximately $528 million in annual revenue, making it the largest divestiture of outpatient healthcare services in U.S. merger enforcement history by number of locations.

UnitedHealth, a massive healthcare conglomerate headquartered in Eden Prairie, Minnesota, is already a dominant player in the market, having acquired Amedisys’s rival, LHC Group, in 2023. Amedisys, based in Baton Rouge, Louisiana, provides home health and hospice care across the country.

Key Terms of the Settlement:

  • 164 facilities divested: Includes both home health and hospice services, plus one palliative care site.
  • Divestitures span 19 states, with the highest concentration in Tennessee (42 facilities), Georgia (28), and Alabama (25).
  • Additional divestitures required if regulatory approvals are not secured for existing plans.
  • Independent monitor appointed to oversee compliance and ensure fair divestiture.
  • Civil penalty: Amedisys will pay $1.1 million for falsely certifying that it had fully responded to DOJ information requests during the merger review under the Hart-Scott-Rodino Act.
  • Compliance training: Amedisys must provide antitrust training to its corporate and field leaders.

The DOJ said the settlement ensures that the divested assets will go to buyers with the capacity to compete effectively, preserving competition in local markets and protecting access to care for seniors and vulnerable patients. It also includes safeguards to prevent UnitedHealth from undermining the new competitors’ ability to operate effectively.

Public Comments Invited

As required under the Tunney Act, the proposed settlement and a competitive impact statement will be published in the Federal Register, kicking off a 60-day public comment period. Interested parties can submit feedback to the DOJ before the U.S. District Court for the District of Maryland decides whether to approve the deal.


Facility Breakdown by State (Home Health / Hospice):

  • Tennessee: 35 / 7
  • Georgia: 28 / 0
  • Alabama: 24 / 1
  • West Virginia: 11 / 2
  • Kentucky: 15 / 0
  • Mississippi: 8 / 0
  • South Carolina: 4 / 0
  • Maryland: 5 / 0
  • New Jersey & New York: 3 / 0 each
  • Other states (FL, OH, MO, IN, LA, PA, IL, AR): smaller numbers

The DOJ emphasized that the transaction, as originally proposed, would have substantially lessened competition in numerous local markets for home health and hospice services.

This action marks another significant move by the Biden administration’s antitrust enforcers to check consolidation in the healthcare sector, which they argue could lead to higher costs and reduced quality for patients and workers alike.

Source: https://www.justice.gov/opa/pr/justice-department-requires-broad-divestitures-resolve-challenge-unitedhealths-acquisition

Competition Today

FREE
VIEW