The U.S. Deparment of Justice is requesting more information from McKesson and Change Healthcare Holdings before signing off on the two companies’ plans to combine health IT operations into a new, $3.4 billion business.
San Francisco-based McKesson and Nashville, Tennessee-based Change Healthcare disclosed Tuesday that the Justice Department on Aug. 31 requested more information on this proposed business combination. This is the “second request” by DOJ, which is reviewing the deal on antitrust grounds, according to a McKesson filing with the Securities and Exchange Commission.
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Change Healthcare filed a similar document on Tuesday.
“McKesson and Change Healthcare will respond as quickly as practicable and continue to work cooperatively with the DOJ staff in connection with its review of the transactions contemplated in the Contribution Agreement. Both McKesson and Change Healthcare continue to expect the transaction to be completed in the first half of calendar year 2017,” each filing said.
Neither McKesson nor Change offered any details about a first request from DOJ. The SEC filings were the first public statements either company has made about any inquiries from the federal government since the deal was announced June 28.
The two companies plan on combining most of McKesson Technology Solutions, the health IT division of McKesson, with the assets of software analytics and networking firm Change Healthcare into a new, yet-unnamed entity. McKesson would retain its RelayHealth Pharmacy and its Enterprise Information Solutions (EIS) operations.
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Change Healthcare had been known as Emdeon until late last year.
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