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LEGAL NEWSLINE

Thursday, November 14, 2024

Lawsuit filed against UnitedHealth-Amedisys merger over senior care concerns

State AG
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Attorney General Letitia James | Official website

New York Attorney General Letitia James, along with three other attorneys general and the U.S. Department of Justice (DOJ), has filed a lawsuit against UnitedHealth Group and Amedisys, Inc. The legal action aims to block UnitedHealth's acquisition of Amedisys, citing concerns over potential negative impacts on senior care services nationwide.

Attorney General James stated that "quality home health and hospice services provide essential care to seniors where they are most comfortable – in their homes, surrounded by their family and loved ones." She emphasized that competition among healthcare providers ensures fair treatment for both patients and workers. According to the lawsuit, the merger would violate antitrust laws by reducing competition, which could lead to increased prices and decreased quality of care for seniors.

The lawsuit highlights the importance of competitive markets in maintaining service quality. Both companies have invested in programs targeting specific health conditions to attract more patients. The removal of Amedisys as a competitor could allow UnitedHealth to increase prices or reduce offerings without significant constraints.

The legal challenge also points out the benefits competition brings to employees in terms of pay and benefits. Both companies currently offer incentives such as bonuses and tailored benefits packages to retain staff. The merger could diminish this competitive dynamic, potentially affecting employee compensation negatively.

Attorney General James is joined in this lawsuit by her counterparts from Illinois, Maryland, and New Jersey. They seek a court order blocking the merger and demand $13 million in civil penalties from Amedisys for non-compliance with records requests related to the merger approval process.

James has been active in protecting consumers from anticompetitive practices. In August 2024, she led a coalition that won a significant case against Google regarding its monopoly on online search engines. She has also participated in lawsuits against other major corporations like Amazon for similar issues.

This case is managed by Assistant Attorney General Saami Zain under the supervision of Amy McFarlane and Elinor Hoffmann from New York's Antitrust Bureau within the Economic Justice Division.

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