UnitedHealth Group’s $3.3 billion planned acquisition of Amedisys is undergoing a comprehensive review by Oregon state officials, after a preliminary analysis by the Oregon Health Authority said the deal could stifle competition in that state.
The state health agency said Tuesday the review is expected to take 180 days and will examine the impact the transaction could have on patient access, cost, quality and equity.
Related: UnitedHealth, Optum under antitrust investigation by DOJ: WSJ
Home health company Amedisys agreed to the all-cash deal with UnitedHealth Group’s Optum unit last June, after spurning a $3.6 billion all-stock offer by Option Care Health. The acquisition raised antitrust concerns due to UnitedHealth Group’s ownership of home health provider LHC Group and is the subject of an investigation by the U.S. Justice Department, according to the Wall Street Journal.
The Oregon Health Authority ended a preliminary review of the deal March 14 that found UnitedHealth’s acquisition of Amedisys could potentially have a significant impact on that state due to the range of health services the two companies offer. UnitedHealth is a large health insurer in Oregon through its UnitedHealthcare unit, and also owns physician practices. Amedisys offers home health, hospice and hospital-at-home services.
The ownership of physician practices was of particular concern in a report by the state agency. It said UnitedHealth’s acquisition of Amedisys could influence patient referrals to home health and hospice services.
“OHA’s preliminary analysis of claims data showed that UnitedHealthcare was the payer for 15% of home health and hospice patients who saw Optum providers in 2021,” the agency said. “Among patients who saw other providers, UnitedHealthcare was the payer for 9%.”
Amedisys provides home health and hospice services to approximately 470,000 patients in 37 states and the District of Columbia. UnitedHealth Group’s LHC Group also provides home health and hospice services in 37 states. Both companies have locations heavily concentrated in the South, but the two also overlap in the Midwest and East and West coasts.