In last paragraph, corrects name of company fined to Amedisys, not UnitedHealth

By Jody Godoy

WASHINGTON, Aug 7 (Reuters) - UnitedHealth Group UH.N has agreed to sell off 164 hospice and home health locations to resolve U.S. antitrust concerns over its $3.3 billion acquisition of Amedisys AMED.O, the U.S. Justice Department said on Thursday.

The Justice Department and attorneys general from four states sued last year to block the deal, arguing it would reduce competition in the home health services market.

The deal is the latest to be cleared by Trump administration antitrust enforcers, who have shown greater willingness to clear deals than their predecessors in the Biden administration.

"This settlement protects quality and price competition for hundreds of thousands of vulnerable patients and wage competition for thousands of nurses,” said Justice Department antitrust head Gail Slater.

A spokesperson for Optum, UnitedHealth's healthcare provider unit, said in a statement that "with Amedisys, we look forward to continuing meaningful improvements in the home health and hospice care space, a vital part of our value-based care approach."

The Justice Department also fined Amedisys $1.1 million for failing to flag missing information during the merger review.

(Reporting by Jody Godoy in New York, Ismail Shakil and Doina ChiacuEditing by Brendan O'Brien and Frances Kerry)

((doina.chiacu@thomsonreuters.com; 202-898-8322;))