The Department of Justice is preparing to file a lawsuit to block UnitedHealth Group’s acquisition of Change Healthcare, reports DOTmed.
Change Healthcare in a filing with the SEC had said it plans to complete its merger with United Health Care by 12 a.m. this Sunday unless the DOJ files a lawsuit to stop the deal.
Valued at $13 billion, the deal is expected to allow Optum, a subsidiary of UHG, to offer software, data analytics and technologies provided by Change to enhance workflow and simplify transactions across healthcare systems. Other companies and organizations are concerned that the agreement would hinder competition in health IT services and add to the massive power already wielded by UHG, which is the owner of UnitedHealthcare, the largest U.S. healthcare insurer. Change would enable it to consolidate and use much of the country’s healthcare data to process and deny patient claims, they say.
In response to these concerns, the DOJ launched an investigation last March and asked both companies to provide information about the deal. Then in August, the agency was said to have reached out to private attorneys about possibly pursuing litigation to stop the deal from moving forward. Read more.
