- CMA Provisionally Approves UnitedHealth-Emis Merger
- Assessment: No Harm to Competition or Patient Outcomes
- CMA’s Path Forward: Public Consultation and Final Decision
The UK’s competition watchdog conditionally approved the merger of two NHS service providers.
UnitedHealth Group’s acquisition of AIM-listed Emis is not expected to hurt competition or patients, according to the CMA.
Emis, which is headquartered in Leeds, provides software and IT services to GP surgeries throughout the United Kingdom. Including the electronic patient record system utilized by the majority of NHS GPs.
Optum, a UnitedHealth company, offers GPs prescription prescribing tools, data analytics, and advisory services.
In June of last year, Optum made an offer to acquire Emis, but the CMA initiated an initial investigation in January out of concern that the deal could result in “worse outcomes” for the NHS by reducing competition.
After rejecting UnitedHealth’s proposed remedy of divesting some businesses. The CMA referred the transaction in March to an independent panel for an in-depth investigation.
Today, the CMA announced that its investigation confirmed that Emis, as the UK’s leading provider of electronic patient record systems to NHS GPs, maintains a ‘particularly strong’ market position.
However, it was determined that the merger between the two companies “should not raise competition concerns.”
The regulator will now conduct a public consultation on its preliminary findings before making a definitive determination by the beginning of October, according to the two companies.
Kirstin Baker, chair of the independent inquiry panel conducting the investigation, stated, ‘Digital technology and data analytics play an increasingly crucial role in supporting high-quality healthcare in the NHS, so we must investigate this deal thoroughly.
“We want to ensure that the NHS continues to reap the benefits of innovation and efficiencies generated by technology services competing for its business.”
After carefully analysing a wide range of information, we believe this acquisition will neither hurt competition or patients.
Friday’s late trading saw FTSE AIM UK 50-listed Emis shares increase by a quarter to just over £19, returning to the record highs reached in June 2022 shortly after the takeover offer announcement.
Bank of America Corporation is Emis’s largest stakeholder, followed by Morgan Stanley and JP Morgan Securities.
Optum UK stated that it would continue to cooperate with the CMA until the conclusion of its investigation.
The company added, “We remain committed to the long-term success of the NHS.” Our mission is to improve the healthcare system in the United Kingdom for GPs and patients equally.
