Amedisys (NASDAQ: AMED) has divested a number of home health locations in a sale to VitalCaring.
VitalCaring also acquired some Unitedhealth Group (NYSE: UNH) care centers in the deal. Financial terms were undisclosed. Rumors of a potential divestiture began circulating in May.
“On June 28, 2024, [Amedisys], UnitedHealth Group Incorporated and certain of their respective subsidiaries, collectively, sellers, entered into a purchase agreement and related agreements relating to the sale of certain Amedisys home health care centers and certain UnitedHealth Group care centers to VCG Luna, LLC, an affiliate of VitalCaring Group,” Amedisys indicated in a filing with the U.S. Securities & Exchange Commission (SEC).
The Texas-based home health and hospice company VitalCaring Group was built largely through acquisitions.
VitalCaring was formed in July 2021, when the private equity firms The Vistria Group and Nautic Partners began acquiring home health and hospice agencies throughout the South and Southeast. More transactions followed, with an initial emphasis on home health care. In August 2022, April Anthony, former CEO of Encompass Health’s (NYSE: EHC) home health and hospice business, joined VitalCaring as its CEO and a third principal owner.
The transaction comes as the UnitedHealth Group subsidiary Optum awaits the closure of its own pending acquisition of Amedisys. Optum last June penned its agreement to acquire Amedisys in an all-cash transaction of $101 per share, or about $3.3 billion.
The Amedisys deal is among a slew of large acquisitions by Optum, which include the home health and hospice provider LHC Group and the health care tech company Change Healthcare. Optum closed its $5.4 billion acquisition of LHC Group in February 2023.
Earlier this year, the U.S. Department of Justice indicated that it would investigate UnitedHealth Group’s recent transactions due to potential antitrust concerns. The DOJ performed a similar investigation — and filed a lawsuit — when Optum acquired the health care technology company Change Healthcare last year. A federal court eventually allowed that deal to proceed.