UnitedHealth Group Inc. ( UNH ) would divest more than 160 healthcare facilities as part of a proposed settlement with the U.S. Department of Justice (DOJ) to resolve antitrust concerns surrounding its $3.3 billion acquisition of Amedisys Inc. ( AMED ) .

The agreement, announced Thursday, also includes a $1.1 million civil penalty against Amedisys ( AMED ) for providing inaccurate information during the regulatory review process.

What Happened?

The DOJ’s Antitrust Division, alongside several state co-plaintiffs, argued that the deal would harm competition in the home health and hospice care sectors. In November 2024, the DOJ sued to block the deal.

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UnitedHealth’s Optum unit’s website noted that the home healthcare industry remains highly fragmented despite the growing market. The company also said the demographic shift underscores the necessity for expanded home health services that allow older adults to remain in their homes.

The proposed settlement addresses those concerns by requiring UnitedHealth ( UNH ) and Amedisys ( AMED ) to sell 164 home health and hospice locations across 19 states, including a palliative care facility.

These divestitures represent approximately $528 million in annual revenue and mark the largest outpatient healthcare services divestiture in a merger case by number of facilities.

Why It Matters?

Under the proposed agreement, UnitedHealth ( UNH ) may need to divest eight additional locations if it cannot secure regulatory approval for the initial asset transfers.

The settlement also calls for appointing a monitor to ensure compliance and proper execution of the divestitures.

To ensure the success of the divestiture, the buyers will be granted the necessary personnel, assets, and existing business relationships to compete effectively with UnitedHealth ( UNH ) in the affected areas.

The settlement also introduces measures to deter interference with the new operators’ ability to compete.

Amedisys ( AMED ) will pay the $1.1 million civil fine and commit to improving its internal antitrust compliance.

The company had falsely certified to regulators that it had submitted complete and accurate information during the Hart-Scott-Rodino antitrust review process.

Going forward, Amedisys ( AMED ) must train its corporate and field—based leadership team on antitrust compliance obligations.

Price Action: UNH stock is up 1.96% at $249.47 at the lastc check Friday.

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