UnitedHealth Under U.S. Antitrust Investigation, May Impact Mergers
The United States Department of Justice (DOJ) is conducting an antitrust investigation into UnitedHealth Group, scrutinizing the business practices of its insurance unit, UnitedHealthcare, and its health-services arm, Optum. The investigation is focused on Optum's acquisition of physician groups and the potential anti-competitive effects such ownership may have. Specifically, the DOJ is examining whether Optum's ownership of physicians could impede competition by favoring Optum-owned groups in UnitedHealthcare's contracting practices and by presenting challenges to rival health insurers.
In addition to the probe into physician group acquisitions, the DOJ is investigating allegations related to Medicare billing practices. There is concern that doctors may be exaggerating patients' illnesses to increase payments, a practice that could have broader implications for healthcare costs. Furthermore, the department is reviewing UnitedHealth's proposed $3.3 billion acquisition of Amedisys, a home health company, and is aware of an antitrust suit filed by Emanate Health against UnitedHealth. Emanate Health claims that UnitedHealth pressured them not to compete with its primary care groups.
The investigation arrives amidst a broader context of healthcare industry challenges, including a cybersecurity attack on Change Healthcare, a key billing and data systems provider. This attack has resulted in significant disruptions across various healthcare businesses in the United States, further complicating the landscape in which UnitedHealth Group operates. The DOJ's actions signal a wider effort to address potential anti-competitive practices in the healthcare sector and ensure market fairness.
