The Competition and Markets Authority (CMA) has approved UnitedHealth’s £1.2 billion takeover of EMIS.
For those not in the know EMIS has been supplying the NHS with data management systems, notably including the electronic patient record system that serves as the cornerstone for the majority of NHS General Practitioners (GPs).
Complementing EMIS’s offerings, Optum, which is part of UnitedHealth Group, has been a provider of software solutions for GP prescription management, alongside crucial data analytics and advisory services aimed at optimising the healthcare ecosystem.
The proposed acquisition, which unites these two prominent entities, triggered initial concerns during a CMA Phase 1 investigation. There were apprehensions that the merger could potentially lead to detrimental outcomes for the NHS, manifesting as a reduction in competition. These concerns served as the catalyst for a more intensive Phase 2 enquiry, guided by an independent panel, tasked with delving deeper into the potential implications of the merger.
While the merged businesses themselves do not compete, Optum and its competitors use the data infrastructure maintained by EMIS, weaving their proprietary software solutions into EMIS’s electronic patient record system.
The independent panel overseeing the Phase 2 investigation said the merger does not pose significant competition concerns. This provisional clearance signifies a critical juncture, underscoring the potential compatibility and synergies between the two entities while upholding the principles of competition within the healthcare technology sector.
Panel Chair Kirstin Baker said: “Digital technology and data analytics play an increasingly important role in supporting high-quality healthcare in the NHS, and so it’s important we investigate this deal thoroughly.”
She continued: “We want to ensure the NHS continues to benefit from innovation and efficiencies brought about by technology services competing for its business. After carefully considering a broad range of evidence, we have provisionally found that this deal is not expected to harm competition or adversely affect patients.”
