The Competition and Markets Authority has provisionally cleared the proposed £1.2bn acquisition of Leeds-based EMIS.
US healthcare giant, UnitedHealth, announced the acquisition of the healthcare software and systems specialist last year.
That’s when the CMA launched its Phase 1 investigation, fearing a deal could reduce competition and lead to “worse outcomes for the NHS and ultimately patients and UK taxpayers.”
EMIS supplies data management systems to the NHS, including the electronic patient record system used by the majority of NHS GPs.
Optum, which is part of UnitedHealth, provides the software used by NHS GPs to prescribe medicines, as well as data analytics and advisory services that the NHS uses to help improve overall healthcare and health service provision.
The CMA was concerned that even though they do not supply competing services, Optum and competitors use data that is held by EMIS and integrate it into their own software with EMIS’s electronic patient record system to compete in other markets, including the supply of population health management services and medicines optimisation software.
These concerns were taken to Phase 2, overseen by an independent panel, which has provisionally found that the merger does not raise competition concerns.
It found that EMIS held a “particularly strong market position in the supply of electronic patient record systems” but, “the combination of this position with Optum’s activities should not present competition concerns.”
The panel added that the combined group would not “be able to use the EMIS business to harm the competitiveness of rivals. This is primarily because the NHS would be able to use its oversight role to prevent the merged business from pursuing this kind of strategy.”
“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,” said Kirstin Baker, Chair of the independent inquiry panel carrying out the investigation.
“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.”
This all means that the deal has provisionally been given the green light. The CMA will now consult on its findings and listen to further views from “interested parties” before reaching a final decision.
It’s due to deliver its final report by 5th October.
