Change Healthcare mulling sale of its ClaimsXten arm to secure federal OK for UnitedHealth merger

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

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

It's unclear whether there is a timeline for a potential divestiture or if such a deal would convince the Department of Justice (DOJ) to sign off on it, according to Bloomberg.

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

RELATED: UnitedHealth-Change Healthcare deal could close in late February

The merger has proven controversial within the industry, as groups such as the American Hospital Association argue it could lead to a significant monopoly on health data. If the deal is finalized, Change Healthcare will be folded into UnitedHealth's Optum subsidiary.

UnitedHealth Group pushed back the outside date for the merger to April 2022 as the companies await the final word from the DOJ. 

The DOJ began investigating the acquisition in March 2021 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 delay closing until it completed its investigation.

The companies have not provided an update on the status of the DOJ investigation for some time, though they have both said they're complying with requests from the feds.