Health insurer UnitedHealth (UNH) has finally completed its $3.3 billion acquisition of Amedisys, a home health and hospice provider, after two years of regulatory hurdles due to antitrust concerns. The deal, executed through UNH’s Optum division, marks a major expansion of its footprint in home-based care.
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Upon closing, Amedisys repaid $399.2 million to clear all outstanding debt. With the merger complete, Amedisys stock will no longer be traded on the Nasdaq. Each share of Amedisys common stock was converted into $101 in cash for shareholders.
Regulatory Roadblocks and DOJ Settlement
The merger faced intense scrutiny from the DOJ, which sued to block the deal in November 2024. Regulators feared the combination of Amedisys and UnitedHealth would stifle competition in home health and hospice markets.
To resolve these issues, the companies entered a settlement with the DOJ. They have agreed to divest 164 facilities across 19 states to BrightSpring Health Services and The Pennant Group (PNTG). Further, Amedisys paid a $1.1 million civil penalty for false certification and agreed to antitrust compliance training.
With Amedisys now part of UnitedHealth, the combined company is the largest hospice provider in the U.S., caring for over 465,000 patients a year. The deal supports Optum’s plan to offer more connected and affordable care at home.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, four Holds, and two Sells assigned in the last three months. At $312.65, the average UnitedHealth stock price target implies a 15.48% upside potential.
