UnitedHealth and Amedisys have agreed to divest specific assets to facilitate their $3.3 billion merger facing scrutiny from federal regulators. The companies plan to sell certain medical centers to VCG Luna, a subsidiary of VitalCaring Group, pending the completion of their merger. This decision comes in response to the Department of Justice’s concerns over potential anticompetitive effects. UnitedHealth initially announced plans to acquire Amedisys in June 2023 for $101 per share in cash. However, the merger was delayed due to rigorous examination by DOJ and state regulators. In an effort to assuage regulatory concerns, both companies aim to offload primarily home health locations from Amedisys and Optum, part of UnitedHealth’s network. VitalCaring, formed by private equity firms Vistria Group and Nautic Partners, will take over these assets, aiming to mitigate the overlap in services and offer more community-based care options. Despite these divestitures, analysts speculate that additional actions may be required to address all regulatory objections.

Healthcare, Private Equity,United States