Optum, owned by UnitedHealth Group, has surprised the healthcare industry with a $3.26 billion all-cash offer to acquire home health provider Amedisys. The proposed transaction aims to enhance value-based care and improve patient outcomes. Optum’s offer represents a 26% premium over Amedisys’ recent share price and does not require shareholder approval. The deal would expand Optum’s presence in the fragmented home health market, addressing the increasing demand for in-home care and the need for investment in the sector.
Optum, a health services company owned by UnitedHealth Group, has surprised the industry with an all-cash offer of $3.26 billion to acquire Amedisys, a leading provider of home health, hospice, and high-acuity care. The proposed transaction aims to advance value-based care and improve health outcomes while reducing costs.
Optum’s CEO, Dr. Patrick Conway, expressed optimism about the partnership, highlighting Amedisys’ commitment to quality and innovation in home care and Optum’s expertise in value-based care. The combination of these strengths could lead to significant improvements in patient experiences and outcomes.
The interest in home-based care has grown steadily, driven by the desire of older Americans to age in place. The COVID-19 pandemic further accelerated the shift toward home healthcare as patients sought safe alternatives to traditional medical facilities.
Notably, just last month, Option Care Health, Inc. had proposed a merger with Amedisys in an all-stock transaction valued at approximately $3.6 billion. Option Care Health emphasized the value opportunities of its proposal, including substantial cash flow by 2025 and combined revenue exceeding $9 billion by 2027. However, with Optum’s unexpected announcement, Option Care Health reiterated the benefits of its own offer.
Optum’s all-cash proposal represents a 26 percent premium over Amedisys’ recent closing share price and a 29 percent premium to the unaffected share price. Importantly, the offer does not rely on financing or require shareholder approval, providing a straightforward path to completion if accepted by Amedisys’ board of directors.
Optum aims to expand its presence in the home health sector through this deal. It recognizes the fragmented nature of the market, with no single participant having a significant share. This understanding gives Optum confidence that regulatory approval for the combination will be secured.
The announcement emphasized the growing demand for in-home care, surpassing the available supply. Optum believes that substantial investment is needed in the sector to meet the needs of patients and families, delivering compassionate, high-quality care in the comfort of their own homes.