CMA orders Uinversal Health Services to sell East Midlands hospital

Universal Health Services must sell one of its hospitals in the East Midlands on competition grounds.

The UK´s competition authority found that the merger of Universal Health Services´ subsidiary Cygnet Health Care with Cambian Adult Services would mean less choice in some East Midlands male mental health services.

Competition concerns

An in-depth investigation by the UK´s Competition and Markets Authority (CMA) determined that the merger could result in a substantial lessening of competition in the East Midlands where the enlarged entity is the largest provider of male mental health rehabilitation services.

“In order to maintain competition in the East Midlands, the companies are now required to sell one of their hospitals in the area to a buyer approved by the CMA,” said the competition authority in a statement.

According to the CMA, clinical commissioning groups (CCGs), the main customers of these hospitals, would have less choice, and could face higher prices or lower quality when referring patients.

Largest provider

Universal Health Services acquired Cambian Adult Services in December 2016 through its subsidiary Cygnet Health Care. 

Both companies manage hospitals providing rehabilitation services to patients suffering from long-term mental illness.

The CMA said the Universal Health Services subsidiary was "many times the size of the next largest provider" in the East Midlands region.