Change Healthcare is considering selling its ClaimsXten arm to ensure federal OK for UnitedHealth merger

Change Healthcare is considering the sale of its payment integrity business, ClaimsXten, in the hope that it will pave the way for federal approval of its merger with UnitedHealth Group, Bloomberg reports.

People with knowledge of the case told the business that ClaimsXten could fetch $ 1 billion if it is put up for sale. The company generates between $ 130 million and $ 150 million in annual earnings before interest, taxes, depreciation and amortization.

It is unclear whether there is a timeline for a potential divestiture, or whether such an agreement would convince the Department of Justice (DOJ) to sign it, according to Bloomberg.

UnitedHealth declined to comment on the deal and Change Healthcare could not be reached for comment at the time of publication.

RELATED: UnitedHealth-Change Healthcare Agreement May Close at the End of February

The merger has proven to be controversial in the industry, as groups such as the American Hospital Association claim it could lead to a significant monopoly on health data. If the transaction is completed, Change Healthcare will be folded into UnitedHealth’s Optum subsidiary.

UnitedHealth Group moved the external date of the merger back to April 2022, as companies await the final word from the DOJ.

The DOJ began investigating the March 2021 acquisition amid a growing chorus of antitrust concerns. The agency was reportedly considering a lawsuit to intervene in the deal in early August, but later that month, UnitedHealth and Change entered into a timing agreement to postpone the closure until it completed its investigation.

The companies have not provided an update on the status of the DOJ survey for some time, although they have both said they are responding to requests from FB.

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