According to the British competition watchdog, if the deal goes through, it would lead to lower quality and more expensive software options for the NHS
EMIS accepted the all cash-offer from Optum UK in June 2022. (Credit: Darko Stojanovic from Pixabay)
The UK Competition and Markets Authority (CMA) said that the £1.2bn acquisition of British healthcare technology company EMIS by Optum Health Solutions (UK) [Optum UK], a fully-owned subsidiary of US-based UnitedHealth Group, would raise competition concerns in Britain.
According to the British competition watchdog, if the deal goes through, it would result in lower quality and more expensive software options for the National Health Service (NHS).
The CMA has found in its initial phase 1 probe that competition could be significantly stifled, particularly in the population health management and medicines optimisation software markets.
The UK CMA said that the proposed merger could adversely affect services offered by Optum’s competitors.
Optum and other suppliers rely on digital connections to the data held by EMIS, and integrations with the latter’s electronic patient record system.
If the transaction goes through, Optum may seek to limit these connections, which the competition regulator believes will unfairly damage competing businesses. As a result, the NHS, the buyer of the products, will have fewer options, higher pricing, and inferior quality offerings, said the CMA.
CMA Senior Mergers Director Sorcha O’Carroll said: “The NHS and the millions of patients under its care depend on critical behind-the-scenes technology to ensure people are looked after and receive the treatment needed to get better.
“This deal could see the NHS lose out on the benefits of competition, including innovation in these products and services and getting better value for money. UnitedHealth has the opportunity to address our concerns, otherwise it will progress to a more in-depth investigation.”
The phase 1 investigation into the merger was launched by the CMA in January 2023.
UnitedHealth and EMIS have been given five working days to come up with proposals to address the concerns raised by the CMA.
After this, the regulator will have a further five days to decide whether to accept any offer or refer the case for an in-depth phase 2 probe.
EMIS accepted the all cash-offer from Optum UK in June 2022.