Amedisys continues to see revenue growth in the midst of its pending acquisition by UnitedHealth Group (NYSE: UNH).
The company’s net service revenue rose $23.4 million to $594.8 million in the first quarter of the year compared to $571.4 million in Q1 2024. Net income for Q1 reached $61 million, up from $14.4 million year over year. This is inclusive of $16.8 million in merger-related expenses.
Amedisys did not release segment-specific results for its hospice and home health businesses or its subsidiary Contessa.
The home health and hospice provider offers home health, hospice and palliative care, among other services to more than 465,000 patients annually across 38 states and Washington D.C.
The UnitedHealth Group subsidiary Optum, in June 2023 inked its agreement to acquire Amedisys in an all-cash transaction of $101 per share, or about $3.3 billion. Last summer, the U.S. Justice Department (DOJ) began investigating potential antitrust concerns related to the deal.
Amedisys and UnitedHealth Group are now embroiled in a lawsuit by the DOJ. The agency seeks to block the pending acquisition due to antitrust concerns. The DOJ’s impetus behind the lawsuit against Optum and Amedisys is multi-faceted, citing potential adverse impacts on competition, home-based care workers and payers.
The DOJ performed a similar investigation — and filed a lawsuit — when Optum acquired the health care technology company Change Healthcare. A federal court eventually allowed that deal to proceed.