The trial over a Justice Department challenge to the $13 billion proposed merger of UnitedHealth Group’s Optum and Change Healthcare began today in Washington, D.C.
Though originally expected to close in the second half of 2021, the deal has been heavily scrutinized by medical groups and federal agencies and has broader implications for the Biden administration’s ability to expand and enforce federal antitrust regulations, according to Becker’s.
The DOJ sued to block the merger in February, alleging that the combination would allow UnitedHealth to get a leg up on its competitors in the insurance space. The deal was first announced in January 2021 and is valued at $8 billion in cash and $5 billion in debt.
“The U.S. Department of Justice’s attempt to block the combination is without merit and serves only to delay improving the experience and outcomes for all participants in the health system,” the two homecare health systems said in April.
As part of the extension, Optum will pay a $650 million fee to Change Healthcare in the event the merger is unable to be completed because of the court’s decision. Read more.
