The U.S. Justice Department is moving to block UnitedHealth Group's (UNH.N) $3.3 billion purchase of Amedisys Inc. (AMED.O) over concerns the deal would harm competition in the market for home health services, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The report said antitrust officials have signed off on a lawsuit to be filed in federal court as soon as this week to stop the deal, according to the people, who asked not to be named.
The move follows a meeting last week between company executives and the Justice Department in a last-ditch effort to ease the government's concerns, the report added.
Amedisys and UnitedHealth did not immediately respond to Reuters requests for comment. The Justice Department declined to comment.
UnitedHealth inked the deal to acquire Amedisys last year. However, analysts had raised concerns at the time that the deal would likely face scrutiny from the Federal Trade Commission, given UnitedHealth's home health presence.
In 2022, UnitedHealth agreed to buy LHC Group for about $5.4 billion in cash, in a push to bolster its presence in the home healthcare market.
The Justice Department had previously sued to stop UnitedHealth's acquisition of Change Healthcare in February 2022, but the buyout was completed later that year.
Along with its insurance unit, UnitedHealth operates the Optum health services arm, which owns physician groups and other assets.
UnitedHealth's shares fell 1.7% in morning trading on Tuesday, while Amedisys stock was marginally down.
