CHS is making another attempt to exit the Pennsylvania market and UnitedHealth Group struck a deal with the Justice Department to allow its acquisition of a home health and hospice care provider to move forward.
Here are three healthcare M&A developments Becker’s reported on during the week of Aug. 4:
1. UnitedHealth Group and Amedisys reached a proposed final agreement with the Justice Department and attorneys general in four states to resolve an antitrust lawsuit that had temporarily halted their proposed $3.3 billion merger.
Under the terms of the settlement, UnitedHealth and Amedisys will divest 164 home health and hospice clinics across 19 states to two companies, BrightSpring Health Services and the Pennant Group, although the DOJ may approve other buyers. The DOJ said the divested clinics must remain viable and competitive businesses. If the companies fail to meet the divestiture requirements, a court-appointed trustee will take over the process. UnitedHealth and Amedisys are also banned from reacquiring any of the divested assets without prior DOJ approval.
The agreement follows nearly a year of legal scrutiny after the DOJ and state attorneys general from Maryland, Illinois, New Jersey and New York sued in November 2024, alleging the merger would harm competition in home health markets across at least 23 states and Washington, D.C. by consolidating two direct competitors.
2. The Federal Trade Commission filed a lawsuit to block Edwards LifeSciences from acquiring JenaValve Technology, arguing the deal would stifle innovation in treatments for aortic regurgitation, a serious heart condition in which blood leaks in the heart chamber.
The lawsuit alleges that the merger would reduce competition in a market where few treatment options exist.
Despite the lawsuit, Edwards LifeSciences said it intends to pursue the acquisition, arguing the deal would help the devicemakers’ innovation footprint and improve access to treatments.
3. Nonprofit organization Tenor Health Foundation signed a letter of intent with Community Health Systems to acquire Commonwealth Health, a three-hospital system in Scranton, Pa.
The deal comes nine months after Franklin, Tenn.-based CHS’ plan to sell Commonwealth Health to nonprofit organization WoodBridge Healthcare collapsed. That deal was valued at $120 million. Neither CHS nor Tenor disclosed the price for their proposed transaction.
Tenor, a hospital turnaround company, acquired Sharon (Pa.) Regional Hospital — formerly owned by Dallas-based Steward Health Care — for $1.9 million after the hospital closed in January. Tenor reopened the hospital in March.
