UNITED KINGDOM — The proposed acquisition of British healthcare technology company EMIS by US firm UnitedHealth for £1.2 billion (US$1.5 billion) has come under scrutiny from the UK’s Competition and Markets Authority (CMA).
The watchdog has raised concerns that the proposed merger could result in reduced competition to develop and supply digital and data analytics products to the NHS, ultimately impacting UK taxpayers and patients.
The CMA’s investigation into the UnitedHealth-EMIS deal is currently ongoing, and a decision on whether to block or approve the acquisition is expected in the coming months.
The CMA noted that the deal could lead to “substantially reduced” competition around analytics and software that enables the safe and effective use of medicines.
UnitedHealth proposed a potential remedy to address the potential competitive impact of its acquisition of a majority stake in UK healthcare software provider, EMIS Group.
This proposal involved divesting Optum UK’s Medicines Optimisation and Population Health Management businesses.
However, the Competition and Markets Authority (CMA) rejected the proposal, stating that it did not sufficiently mitigate the impact of the acquisition on competition.
EMIS expressed disappointment with the CMA’s decision and stated that the proposed remedy was designed to directly address the competition concerns raised by the regulator.
The company also stated that it is currently exploring its options in light of the decision and will provide an update in due course.
The healthcare technology sector is rapidly evolving, and the UnitedHealth-EMIS deal is one of several high-profile acquisitions in recent years.
The industry is highly competitive, with numerous players vying for market share, and increased consolidation could potentially have far-reaching implications for the sector.
EMIS is a major supplier of data management systems to the NHS, including the electronic patient record system used by the majority of NHS general practitioners (GPs) in the UK.
UnitedHealth, on the other hand, owns Optum, which supplies software used by GPs in prescribing medicines and provides data analytics and advisory services to the NHS to improve healthcare provision.
The CMA’s investigation into the proposed acquisition underscores the need to balance competition with the need for innovation and efficiency in healthcare provision.
The NHS has been undergoing a digital transformation in recent years, with an emphasis on the adoption of sophisticated software to improve healthcare delivery.
The proposed merger comes against the backdrop of significant strains on the NHS, including rolling strikes involving thousands of NHS workers, such as nurses, ambulance staff, and physiotherapists.
If the companies do not address the CMA’s concerns with legally binding proposals, the deal will progress to a more in-depth investigation.
This investigation would examine the deal in more detail and assess its impact on competition and the market.
EMIS said it “now intends to engage with the CMA with the objective of agreeing on suitable undertakings in lieu of a phase 2 reference”.
The outcome of the investigation could have significant implications for the NHS, its ability to provide care, and the cost of that care to UK taxpayers.
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