On Tuesday, the U.S. Justice Department said it will block UnitedHealth Group Inc.'s (NYSE:UNH) multi-billion acquisition of Amedisys Inc. (NASDAQ:AMED).

The Justice Department has sued to block UnitedHealth's $3.3 billion purchase of healthcare services company Amedisys, citing concerns about competition in the home health services market.

UnitedHealth's Optum unit launched a website that aims to highlight the benefits of the combination. The website notes that the home healthcare industry remains highly fragmented despite the growing market.

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On average, 26 agencies compete in metropolitan areas with about 500,000 residents, highlighting the range of available care options.

In 2020, approximately 3 million Americans received home health care, a figure expected to grow as the population ages.

By 2030, 18% of the U.S. population will be 65 or older, a significant increase from 13% in 2021.

This demographic shift underscores the necessity for expanded home health services that allow older adults to remain in their homes.

The merger between Optum and Amedisys represents a strategic move to address these needs.

While this combined entity would represent only a portion of the overall home health and hospice care market, the competitive landscape is expected to remain robust.

To promote competition and prevent market dominance, Optum and Amedisys have agreed to divest numerous home health and hospice centers to VitalCaring upon the transaction's completion.

VitalCaring currently operates at around 58 locations across six states.

Price Action: UNH stock is down 2.76% at $589.17 at the last check Thursday

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