The Justice Department’s Antitrust Division, in collaboration with state co-Plaintiffs, has filed a proposed settlement that necessitates extensive divestitures to resolve their challenge against UnitedHealth Group Incorporated’s acquisition of Amedisys Inc. This acquisition, valued at $3.3 billion, has raised significant antitrust concerns, prompting the need for corrective measures to maintain competition in the healthcare sector.

As part of the settlement, UnitedHealth and Amedisys are required to divest 164 home health and hospice locations across 19 states, which represent approximately $528 million in annual revenue. This divestiture is noted as the largest of its kind aimed at resolving a merger challenge in outpatient healthcare services. The settlement also includes provisions for UnitedHealth to divest additional locations if regulatory approval for the initial divestitures is not obtained.

Furthermore, the settlement imposes a monitor to oversee the divestiture process and ensure compliance with the consent decree. It also mandates that the buyers of the divested assets receive the necessary resources to effectively compete against UnitedHealth in overlapping markets. Amedisys will incur a civil penalty of $1.1 million for falsely certifying compliance with the Hart-Scott-Rodino Antitrust Improvements Act, and the company is required to train its leadership on antitrust compliance.

The proposed settlement will be published in the Federal Register as required by the Tunney Act, allowing for a 60-day public comment period before the U.S. District Court for the District of Maryland can finalize the judgment.