Optum, a subsidiary of UnitedHealth Group, has submitted an all-cash proposal to the Board of Directors of Amedisys in a bid to combine with the home health, hospice and high-acuity care provider Amedisys in a transaction estimated at $3.26 billion.
The $100 per share all-cash transaction represents a 26% premium over Amedisys' most recent closing share price and a premium of 29% to the unaffected Amedisys share price of $77.26.
Optum's proposal has no financing contingency or condition and does not require shareholder approval, the company said.
WHAT'S THE IMPACT?
Dr. Patrick Conway, CEO of Optum Care Solutions, said, "Amedisys' commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum's deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth."
In-home care is provided by thousands of organizations nationwide, with no single participant having more than a single-digit percentage share. Optum cited that as a reason it's confident it can secure approval for the combination.
"Even with the numerous providers, demand for in-home care far exceeds available supply, creating the need for substantial investment in the sector to more fully serve patients and their families with compassionate, high quality care in the comfort of their own homes," the company wrote.
According to Reuters, Amedisys' board has not yet determined whether Optum's offer is more appealing than the one from Option Heath Care. In May, Option announced they had entered into a definitive merger agreement with Amedisys valued at about $3.6 billion.
The details of that deal had already largely been hashed out, including governance structure and location of the company's headquarters. That transaction was expected to close during the second half of this year – a timeline that is not in doubt given Optum's attempt to combine with the company.
THE LARGER TREND
Optum has been making a number of deals in recent months, most notably its merger with Change Healthcare. The Department of Justice and the states of Minnesota and New York had brought a lawsuit to stop the $13.8 billion merger, but dropped their appeal in March.
Optum and Change officially merged in October 2022, after winning their case in federal court in September of that year.
Judge Carl Nichols had rejected the DOJ's argument that UnitedHealthcare, UHG's insurance arm and the nation's largest insurer, would use payers' sensitive claims data provided by Change to competitive advantage.
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Email the writer: Jeff.Lagasse@himssmedia.com