UnitedHealth Group’s planned purchase of home health company Amedisys for $3.3 billion is in jeopardy. MINNETONKA, MN/USA - MAY 29, 2016: UnitedHealthcare corporate headquarters exterior and sign. UnitedHealth Group Inc. is an American diversified managed health care company. Credit: wolterke/Adobe Stock;

The government is citing concerns the deal would hinder access to home health and hospice services in the U.S.

The Justice Department on Tuesday sued to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, alleging the deal would give the health-industry giant too much power over the market for home health and hospice services.

The Justice Department and three U.S. states filed a lawsuit on Tuesday to block UnitedHealth Group's $3.3 billion purchase of Amedisys Inc over concern the deal would harm competition in the market for home health services,

The US Justice Department is moving to block UnitedHealth Group Inc.’s $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home-health services, according to people familiar with the matter.

Amedisys (NASDAQ:AMED) dropped 1.5% as the Dept. of Justice confirmed a lawsuit to challenge the home-health services provider's planned $3.3 billion sale to UnitedHealth (UNH). The DOJ and three states filed a lawsuit on Tuesday to block the combination,