The Justice Department and two states have appealed a federal judge’s decision to issue a challenge to UnitedHealth Group’s $13 billion merger with technology company Change Healthcare, according to a news release. The court report was filed on Friday.
The federal government, New York and Minnesota did not specify why they are appealing Judge Carl Nichols’ ruling, which he delivered in the US District Court for the District of Columbia in September.
The Justice Department sued to block the deal in February, alleging that it would violate federal antitrust law by giving insurer UnitedHealthcare access to intelligence about how insurance companies Competitor health insurance structures their provider networks. The plaintiffs waited until the last possible date to appeal Nichols’ decision. The Department of Justice now faces the challenge of potentially disrupting a incorporated company.
UnitedHealth Group completed its $13 billion merger with Change Healthcare in October. UnitedHealth Group paid $7.8 billion in cash and $5 billion in debt to acquire Change Healthcare, and combine Its operations into the OptumInsight revenue cycle management division are growing rapidly. The company also sold Change Healthcare’s claims processing service to a private equity firm for $2.2 billion last month.
UnitedHealth Group, Change Healthcare and the Department of Justice did not immediately respond to requests for interviews.
