Landmark Hospital Merger Goes Back To UK’s Competition Watchdog

The Competition and Markets Authority (CMA) announced that it is assessing the merger proposals for The Royal Bournemouth and Christchurch Hospitals Foundation Trust and Poole Hospital FT. 

It is the latest development in a saga which previously saw a merger proposal blocked by the CMA’s predecessor, the Competition Commission, in 2013. The trusts were required to commit to not merging for 10 years without approval from the CMA. It became a notorious example of the problems competition rules were causing for National Health Service (NHS) structural change.

At the time, the Commission argued the merger would lead to reduced competition, which would not have been outweighed by other benefits.

However, merger plans resurfaced three years later, prompted by proposals to reconfigure acute services across the two hospitals, including the controversial downgrade of Poole’s accident and emergency department.

Meanwhile, the CMA has substantially shifted its position on NHS competition in recent years. It said in a statement last week, “Since the Competition Commission’s decision, there have been significant changes to policy within the NHS that have affected the role that competition plays.

“Competition between NHS hospitals is no longer used by the NHS to drive quality, with collaboration often viewed as a better way to meet increasing demands for care and deliver better value.”

The CMA added it will take the policy changes into account when assessing whether any potential loss of competition caused by the merger would have a negative impact on patients.

Full Content: HSJ

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.