UnitedHealth ( NYSE:UNH ) and Amedisys ( NASDAQ:AMED ) just hit the pause button on their $3.3 billion mergeragain. The deal, originally announced in June 2023, is facing stiff resistance from the DOJ, which isn't thrilled about the potential impact on competition in the home health and hospice market. Despite sweetening the pot with a $100-per-share cash offer (a 26% premium), UnitedHealth's Optum unit has been stuck in a legal back-and-forth, with regulators worried it could hurt patients, insurers, and care providers. Now, the companies have inked a waiver agreement to extend the merger deadline to December 31, 2025, or 10 days after a final court decision, whichever comes first.

This isn't UnitedHealth's first rodeo with regulatory hurdlesremember their tussle with the DOJ over Change Healthcare in 2022? That deal eventually went through, so there's precedent for perseverance paying off. But with a new administration under President-elect Donald Trump and his antitrust chief nominee, Gail Slater, signaling a tough stance on big mergers, the road ahead could be rocky. Analysts are watching closely as UnitedHealth doubles down on its push to finalize the deal, even introducing a $325 million break fee if certain asset divestitures don't happen by May 1. The stakes are high, and investors know it.

The market response? Mixed, but telling. Amedisys shares soared 4.7% in premarket trading, landing at $89.99 as traders welcomed the deadline extension. UnitedHealth, on the other hand, slipped 0.23%a cautious dip that reflects lingering uncertainties. With the DOJ lawsuit heating up and the potential for regulatory shake-ups in the coming months, this is one healthcare saga that's far from over. For now, investors are left weighing the risks against the rewards of a deal that could reshape the industry.

This article first appeared on GuruFocus .