NEW YORK – UnitedHealth Group is being forced to relinquish control of key home health assets in Western New York after a legal smackdown by Attorney General Letitia James and a coalition of state AGs. The fight centered around United’s attempted acquisition of Amedisys, a move prosecutors argued would have strangled competition and left vulnerable patients at the mercy of a healthcare behemoth.
The November 2024 lawsuit alleged that combining UnitedHealth and Amedisys would decimate the market for home health and hospice care, driving up costs and potentially lowering the quality of services for millions relying on these crucial programs. Attorney General James, along with her counterparts in Illinois, Maryland, and New Jersey, weren’t buying United’s promises of continued competition – they saw a clear path to an unfair monopoly.
“When big corporations dominate our health care markets, they can cut services and raise prices without fear of losing money, putting New Yorkers in need at serious risk,” James stated bluntly. “Fair competition helps ensure that New Yorkers can get affordable, quality health care wherever they live. Seniors and other vulnerable New Yorkers’ lives depend on access to quality home care services, and today we are preventing United and Amedisys from jeopardizing those services.”
The core of the problem? UnitedHealth and Amedisys were already the top dogs in many upstate New York home health markets. This rivalry, prosecutors argued, forced both companies to innovate and keep prices reasonable. A merger, without safeguards, would have eliminated that pressure. Both firms had been aggressively investing in specialized care programs for conditions like heart failure and respiratory disease, a competition that directly benefited patients.
The settlement, reached with the Department of Justice (DOJ), mandates UnitedHealth to divest from three Willcare home health locations in Jamestown, Amherst, and Wellsville, selling them to BrightSpring Health Services. This isn’t just a handshake deal; a monitor appointed by the DOJ and the states will oversee the sales to ensure compliance. This ensures that patients in those areas won’t be left with fewer choices and potentially higher bills.
This isn’t an isolated victory for James. In April, she secured over $2.5 million from New York City bus tour companies caught colluding to stifle competition. In March, she triumphed over Intermountain Management after a judge ruled they illegally shut down a competitor, and also reached a settlement with the NCAA to end anticompetitive rules for student athletes. James has also successfully dismantled no-poach agreements in the building services industry and secured a major court win against Google, solidifying her reputation as a relentless advocate against corporate overreach. This latest case demonstrates James’ unwavering commitment to protecting New Yorkers from predatory business practices and ensuring access to vital healthcare services.
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Key Facts
- State: New York
- Agency: NY AG
- Category: White Collar Crime
- Source: Official Source ↗
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