The Justice Department is suing to block UnitedHealth Group’s $3.3 billion purchase of Amedisys, citing concerns the combination would hinder access to home health and hospice services in the U.S.
The antitrust complaint, filed in Maryland by the Justice Department and four states’ attorneys general Tuesday, argues that a potential merger is illegal because the two companies are “such large competitors” already — and the deal would give Minnteonka-based UnitedHealth too much control in many local markets.
That would mean less choice for patients looking for affordable care, the suit alleges, as well as fewer employment options for nurses seeking competitive pay and benefits.
“American healthcare is unwell,” Assistant Attorney General Jonathan Kanter of the Justice Department’s antitrust division, said in a prepared statement. “Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses.”
Tuesday’s lawsuit follows UnitedHealth’s acquisition of LHC Group Inc., another home health and hospice provider. Since that transaction’s completion last year, the Justice Department said, UnitedHealth and Amedisys have emerged as two of the largest providers of home health and hospice care in the country.
The complaint alleges that UnitedHealth’s plan to acquire Amedisys is the result of “an intentional, sustained strategy of acquiring, rather than beating, competition.” After completing the LHC acquisition, the suit says UnitedHealth prevented Amedisys’ 2023 plans to merge with infusion provider OptionCare by paying a “breakup fee” — and then separately made its own acquisition offer, which Amedisys eventually accepted.
UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services.
Global carbon output heads for 2024 record
One year after world leaders made a splashy promise to shift away from fossil fuels, countries are burning more oil, natural gas and coal than ever before, researchers said this week.
Global carbon dioxide emissions from fossil fuels are on track to reach a record 37.4 billion metric tons in 2024, a 0.8% increase over 2023 levels, according to new data from the Global Carbon Project. It’s a trend that puts countries further from their goal of stopping global warming.
The increase was not uniform across the globe. Emissions will most likely decline this year in the United States and Europe, and fossil fuel use in China slowed. Yet that was offset by a surge in carbon dioxide from India and the rest of the world.
The findings were made public early on Wednesday at the United Nations climate change summit in Baku, Azerbaijan, where diplomats and world leaders have gathered to discuss how to raise trillions of dollars to cope with rising global temperatures. Those talks have already been jolted by the election of Donald Trump and the expectation that the United States will soon retreat from the fight against global warming.
Biden limits methane; Trump likely to scrap it
Oil and natural gas companies for the first time will have to pay a federal fee if they emit dangerous methane above certain levels under a final rule announced Tuesday by the Biden administration.
The Environmental Protection Agency rule follows through on a directive from Congress included in the 2022 climate law. The new fee is intended to encourage industry to adopt best practices that reduce emissions of methane — the primary component of natural gas — and thereby avoid paying.
The rule, announced at an international climate conference in Azerbaijan, comes a day after President-elect Donald Trump named former New York congressman Lee Zeldin to head the agency in Trump’s second term. If confirmed by the Senate, Zeldin is expected to move to reverse or loosen dozens of environmental regulations approved under President Joe Biden.
Honeywell investor seeking its breakup
Activist investor Elliott Investment Management
has taken a more than $5 billion stake in Honeywell International and is calling for the industrial conglomerate to split into two separate companies.
In a letter sent to Honeywell’s board, Elliott said that the Charlotte, N.C.-based company needs to simplify its structure as it deals with uneven execution, inconsistent financial results and underperforming stock.
Elliott is advising Honeywell, which has deep roots in Minneapolis, to separate its automation and aerospace businesses.
“As independent entities, Honeywell Aerospace and Honeywell Automation would benefit from simplified strategies, focused management, improved capital allocation, better operational performance, enhanced oversight, and numerous other benefits now enjoyed by dozens of large businesses that have moved on from the conglomerate structure, including former conglomerates General Electric, United Technologies, and many more,” Elliott wrote.
Meta offer Europeans less intrusive ads
Facebook and Instagram users in Europe will get the option to see less personalized ads if they don’t want to pay for an ad-free subscription, social media company Meta said Tuesday, bowing to pressure from Brussels over privacy and digital competition concerns.
Meta Platforms has been offering European Union an ad-free subscription option for about a year to comply with the continent’s strict data privacy rules, but regulators had accused the company of giving people a false choice.
The company said in a blog post that while people will still be able to choose between the subscription and existing free versions, it would also start giving free users an extra option over the coming weeks to see digital ads that are less personalized.
Kraft Heinz dropping Lunchables for schools
Food and beverage manufacturer Kraft Heinz said Tuesday that it no longer is serving the Lunchables meals it created for schools.
The company introduced the two packaged meals — one starring pizza and the other a turkey, cheddar cheese and cracker plate — at the beginning of the 2023-2024 academic year. At the time, Kraft Heinz said the offerings were protein-enriched and contained reduced levels of saturated fat and sodium to meet the requirements of the national free and reduced-price school lunch program.
Nutritionists and advocacy groups were not thrilled by the launch. The Center for Science in the Public Interest called having Lunchables in cafeterias “a highly questionable move for school nutrition” that might confuse families into thinking the versions sold at supermarkets were a healthy option.
Boeing: Jet production delayed for weeks
Boeing says it will be several weeks before it fully resumes building passenger planes, as factory workers return following a strike that lasted nearly two months.
A spokesperson said Tuesday that the delay in restarting plants in Washington state and Oregon is due to multiple steps needed to resume production.
Airline customers have grown increasingly upset over delays in getting new planes from Boeing — delays that started before 33,000 machinists went on strike Sept. 13. Boeing’s schedule for gaining certification of new 737 Max models has also been pushed back.
— News service reports