Department of Justice drops bid to quash UnitedHealth-Change Healthcare merger

State attorneys general and the Department of Justice have dropped their bid to quash the mega-merger between industry giant UnitedHealth Group and radiology vendor Change Healthcare.

It was more than a year ago that the DOJ first sued to block the deal, arguing it would curb competition in markets for health insurance and claims-processing. However, a federal judge in September allowed the merger to move forward, with UnitedHealth Group closing the $8 billion, all-cash acquisition in October.

The DOJ, alongside AGs for New York and Minnesota, filed a notice of its intent to appeal in November, but they have decided to drop the case, according to court documents filed on Monday. Government officials have not disclosed why they opted to end the appeal, and the filing did not give further details. The now-closed case was seen as a key piece of the Biden administration’s antitrust agenda, Fierce Healthcare reported March 21.

A U.S. District Court judge required Change Healthcare to sell off its claims-editing business to address concerns raised by the DOJ and others. Private equity firm TPG agreed to acquire the firm, called ClaimsXten, for $2.2 billion in October.

Numerous provider groups voiced their opposition to the deal when it was first proposed in 2021, including the American Hospital Association and American Medical Association. The AHA declined to comment on Tuesday while the AMA did not immediately respond to a Radiology Business request for comment.

Prior to the merger, Change Healthcare offered various solutions in radiology, cardiology and other specialties, including medical imaging consulting, enterprise storage solutions, revenue cycle management, data analytics and clinical decision support, according to its website. UnitedHealth Group, meanwhile, is a massive, for-profit corporation that includes the nation’s largest commercial health plan and Optum (which Change has now been folded into).