UnitedHealth Group Inc. and Amedisys Inc. gave themselves more time to complete a $3.3 billion deal for the insurer to purchase the home-health provider that’s been challenged by the government.
The companies each waived their right to terminate the deal if it hadn’t been completed within an agreed-upon time, according to a filing Friday. Those dates were either 10 days after a court ruling on a U.S. Justice Department challenge to the deal, or the end of 2025, whichever came earlier.
Regulatory authorities and industry observers have raised concerns about UnitedHealth’s integration of multiple components in the healthcare system, giving them extraordinary negotiating power. The Justice Department sued in November to block the deal for Amedisys over concerns it would harm competition in the market for home-health and hospice services.
Amedisys shares rose as much as 4.7% in trading before US markets opened, while UnitedHealth’s were little changed.
The antitrust lawsuit, filed in Maryland federal court, alleges the combination could lead to higher prices in home health care in 23 states and Washington, DC. Amedisys is a main competitor in many markets to LHC Group, which UnitedHealth purchased last year. Attorneys general of Maryland, Illinois, New Jersey and New York also joined the complaint.
Amedisys and UnitedHealth had proposed selling off more than 100 clinics, but the Justice Department said that still wouldn’t resolve antitrust concerns in more than 100 areas across the US.
As part of the waiver, the companies raised the breakup fee UnitedHealth would pay Amedisys if the deal doesn’t go through to $275 million from $250 million, and could escalate to $325 million if certain conditions aren’t met, according to the filing.
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