DOJ has until February 27 to block Change and UnitedHealth merger
The DOJ is reportedly preparing the lawsuit to block the deal.
Photo: Courtesy UHC
The Department of Justice has until Saturday, February 27 to block the merger between UnitedHealth Group and Change Healthcare, according to a Securities and Exchange Commission filing on February 17.
The filing, by Change, was done in accordance with a timing agreement made with the DOJ. In November 2021, the two companies agreed not to consummate their merger before February 22.
The timing agreement provides the DOJ with 10 days' notice to sue to block the deal.
"Effective February 17, 2022, UnitedHealth Group and the Company provided such notice to the DOJ," Change said in the filing. "Accordingly, the DOJ now has until February 27, 2022 to initiate litigation to block the consummation of the merger."
The DOJ is preparing the lawsuit to block UnitedHealth from purchasing Change, according to Seeking Alpha.
WHY THIS MATTERS
The merger would combine two powerhouses for data analytics, technology and healthcare services. Change would combine with OptumInsight, an arm of Optum under UnitedHealth Group, to serve insurance companies, physicians, hospitals, pharmaceutical and biotechnology companies and government agencies.
The American Hospital Association has been a critic of the deal, saying the merger threatens to reduce competition for the sale of healthcare information technology services to hospitals and other providers.
THE LARGER TREND
In January 2021, Optum and Change agreed to combine to provide software and data analytics, technology-enabled services and research, advisory and revenue cycle management.
"Their combined capabilities will more effectively connect and simplify core clinical, administrative and payment processes – resulting in better health outcomes and experiences for everyone, at lower cost," Optum said by statement in January 2021.
On March 24, 2021, the companies received a request for additional information and documentary materials in connection with the DOJ's review of the merger.
On August 7, 2021, the parties entered into a timing agreement with the DOJ.
In December 2021, UnitedHealth pushed the merger deadline to April 2022.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
