(Bloomberg) -- UnitedHealth Group Inc. and Amedisys Inc. representatives are slated to meet with top Justice Department antitrust enforcers next week in a last-ditch effort to persuade the agency not to challenge their proposed tie-up, according to people familiar with the matter.
The high-stakes meeting between the companies and DOJ antitrust leadership, including Assistant Attorney General Jonathan Kanter, is typically the last step before officials decide whether to file a lawsuit. It’s often referred to as a “last-rites” meeting.
Officials could let UnitedHealth’s $3.3 billion purchase of Amedisys go through, potentially with some changes to address competition concerns. The timing of the meeting could change and no final decision has been made on whether to challenge the deal.
The two sides have discussed meeting as soon as Monday, said the people, who asked not to be named discussing a confidential matter. The Justice Department will need to make a decision by the end of the month under an agreement with the companies, the people said.
The companies have said they plan to close the deal by the end of December.
UnitedHealth and the Justice Department declined to comment. Amedisys didn’t respond to requests for comment.
The Justice Department’s antitrust division has been investigating the deal for more than a year. Antitrust officials are concerned the proposed tie-up could lead to higher prices for home-health services, the people said.
To ease those concerns, the companies have offered to sell an undisclosed number of clinics to VCG Luna LLC, an affiliate of Texas home-health and hospice company VitalCaring Group.
The agency has been scrutinizing that proposed fix for the past several months after it launched an in-depth investigation into the transaction in August 2023, said the people.
UnitedHealth has combined insurance with doctors’ practices, drug benefits and other businesses to create the largest US health-services company by revenue. The Justice Department is separately probing the company for alleged monopolization of health-care markets.
The scrutiny marks the latest example of the Biden administration’s stepped-up antitrust enforcement as a keystone of its economic policy. Antitrust officials are seeking to reverse what they view as decades of lax oversight over corporate consolidation and market power that are affecting consumers, including in health care.
Amedisys isn’t UnitedHealth’s first foray into home health services. Last year, the health- care giant bought another major player, LHC Group, in a deal that was reviewed by the US Federal Trade Commission, which also enforces antitrust laws. The FTC didn’t challenge it because UnitedHealth didn’t compete in home health care at that time.
UnitedHealth’s LHC Group has 964 locations in 37 states, while Amedisys operates 537 care centers in 37 states, according to company documents. While the combined company would control only 10% of home health care services nationwide, the overlaps would be significant in certain states, including the South.
--With assistance from John Tozzi and Leah Nylen.
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