UnitedHealth and Change win court case to merge
The DOJ says it is closely reviewing the opinion to evaluate the next steps.
Photo: Blanchi Costela/Getty Images
UnitedHealth Group and Change Healthcare have won their case to merge.
Federal Judge Carl Nichols on Monday denied the Department of Justice's request to block the $13 billion merger, with the DOJ saying it is evaluating its next steps.
"… It is ordered that the Government's request to enjoin the proposed merger of Defendant UnitedHealth Group Incorporated with Defendant Change Healthcare, Inc. is denied," Nichols said. "It is further ordered that Defendants divest ClaimsXten to TPG Capital as proposed. And it is further ordered that judgment be entered for Defendants."
UnitedHealth Group released this statement on the decision: "We are pleased with the decision and look forward to combining with Change Healthcare as quickly as possible so that together we can continue our work to make the health system work better for everyone."
Assistant Attorney General Jonathan Kanter for the Antitrust Division said by statement, according to America News: "We respectfully disagree with the court's decision and are reviewing the opinion closely to evaluate next steps."
WHY THIS MATTERS
The merger combines UnitedHealth Group, one of the largest companies in the U.S. and the owner of the nation's largest health insurer, and Change Healthcare, among the nation's largest electronic data interchange clearinghouses.
The basis of the DOJ's case centered on the competitively sensitive data UnitedHealth would gain from its rivals through the acquisition uniting UHG subsidiary OptumInsight and Change.
To alleviate anti-competitive concerns, UnitedHealth has said it would divest Change's claims editing business of ClaimsXten to TPG Capital, which is part of the court order.
During the bench trial, Nichols questioned the DOJ's argument that UnitedHealth would use other payers' claims data to competitive advantage.
UnitedHealth argued it would not access this information due to firewalls within the company. It has incentives to protect other payers' data since Optum is a multi-payer company.
THE LARGER TREND
On January 6, 2021, UHG announced its agreement to acquire Change for $25.75 per share.
The American Hospital Association raised antitrust concerns with the DOJ, which in February sued to block the deal.
The court decision was released after a two-week bench trial in August.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
