Mergers and Acquisitions: An Overview of Notable Healthcare M&A Activity in Q4 2024

Here is some of the notable M&A activity that occurred among healthcare providers in Q4 2024:

UnitedHealth Group and Amedisys

In November, the Department of Justice released a statement announcing its intent to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, a home health and hospital provider operating in more than 30 states, due to concerns that eliminating competition between the two entities would have negative impacts on patients, insurers and nurses.

“We are challenging this merger because home health and hospice patients and their families experiencing some of the most difficult moments of their lives deserve affordable, high quality care options,” said Attorney General Merrick Garland in a press release about the antitrust lawsuit. “The Justice Department will not hesitate to check unlawful consolidation and monopolization in the healthcare market that threatens to harm vulnerable patients, their families, and health care workers.”

EXPLORE: Get the technology side of mergers and acquisitions right.

While UnitedHealth has proposed to divest assets in hundreds of markets to VitalCaring Group, the DOJ’s complaint states that this action won’t eliminate the merger’s threat to competition.

“Even if VitalCaring were an adequate buyer, the divestiture does not resolve the competitive overlap in over 100 home health and hospice markets across 19 states and the District of Columbia, accounting for well in excess of $1 billion in total commerce,” states the DOJ in its complaint. “Nor does the divestiture address the harm to thousands of home health and hospice nurses in labor markets across 18 states. And the divestiture creates a new presumptively anticompetitive and illegal overlap around Biloxi and Gulfport, Mississippi.”

According to Reuters, UnitedHealth Group and Amedisys have extended the closing deadline to whichever is earlier: 10 days following a final court decision or Dec. 31, 2025.

Union Hospital and Terre Haute Regional Hospital

Union Health and Terre Haute Regional Hospital, both located in Terre Haute, Ind., withdrew their merger application in November. The deal was opposed by the Federal Trade Commission, which released a statement in September urging the Indiana Department of Health to deny it due to concerns over higher costs, lower wage growth for hospital workers and worse healthcare outcomes for Indiana consumers.

“Recognizing the [Certificate of Public Advantage] process is a very complex, innovative approach to improving access and quality health care for area residents, we believe it is best to withdraw the current application to allow time for Union Health and Terre Haute Regional to continue to work with IDOH, to ensure the benefits, including improved access, quality, prevention and early intervention, are outlined in the new application,” Union Health said in a statement on the matter.

Risant Health and Cone Health

In December, Risant Health, a nonprofit organization created by Kaiser Foundation Hospitals, completed a transaction with Cone Health, a system based in Greensboro, N.C., with locations across the state. As part of the deal, Risant Health is now the only corporate member of Cone Health. No purchase was made, and Cone Health will maintain its name, board, leadership and medical staff.

This is the second health system to join Risant Health, following Geisinger earlier in 2024.

“As part of Risant Health, Cone Health will build upon its long track record of success making evidence-based health care more accessible and affordable for more people. The people across the Triad will be among the first to benefit,” said Cone Health President and CEO Dr. Mary Jo Cagle in announcing the move.

READ MORE: These tips can help healthcare CIOs navigate IT integration during M&As.

Rady Children’s Hospital and Children’s HealthCare of California

Two pediatric health systems in Southern California made progress toward a merger announced in December 2023. In November 2024, California Attorney General Rob Bonta conditionally approved the merger of Rady’s Children’s Hospital and Health Center, which operates Rady Children’s Hospital in San Diego, and Children’s HealthCare of California, which operates Children’s Hospital of Orange County and CHOC at Mission. The combined entity will be called Rady’s Children’s Health.

The conditions require the organization to maintain services in both Orange County and San Diego County for 10 years, preserve competition by refraining from anticompetitive practices and limiting price increases, and continue to provide charity care and community benefits.

“Our children deserve access to affordable specialized medical services that support their health and well-being,” said Bonta in a statement. “These conditions ensure that Southern California families retain access to quality, affordable pediatric care during the most difficult times in a child’s life.

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