CMA clears NHS hospital trusts merger
皇冠体育app CMA has cleared the proposed merger between 皇冠体育app Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust and Poole Hospital NHS Foundation Trust.
In 2013, the Competition and Markets Authority鈥檚 (CMA) predecessor, the Competition Commission, prohibited a between the hospital trusts. As a result, they were required to enter into a 10-year commitment not to merge without the CMA鈥檚 permission.
When investigating an NHS hospital merger, the CMA considers the potential impact of that merger on competition between hospitals. Since the Competition Commission鈥檚 decision, there have been significant changes to policy within the NHS that have affected the role that competition plays in the provision of public healthcare services.
皇冠体育app CMA鈥檚 investigation in this case has confirmed that competition between NHS hospitals now plays little role in the provision of NHS services in the east Dorset area, with collaboration often viewed as a better way to meet increasing demands for care and deliver better value. In particular, the CMA found that the 2 hospital trusts have limited incentive to compete with each other, given the way that they are now funded, and so there would be no significant loss of competition in this area after the deal.
皇冠体育app CMA has therefore concluded that the merger does not give rise to competition concerns and should be cleared. 皇冠体育app CMA has, in parallel, also released the hospitals from the commitment not to merge that they had given in 2013.
Throughout its investigation, the CMA worked closely with the sector regulator, NHS Improvement, and engaged with local commissioners, who are responsible for planning and commissioning healthcare services in their local area. 皇冠体育appse NHS bodies fully supported the merger. 皇冠体育app CMA also carefully considered all views and evidence provided by patients and their representative groups, local authorities and other interested bodies.
皇冠体育app CMA started to discuss the merger with the two hospitals in 2019. Its information-gathering with the trusts and other NHS bodies was completed before the coronavirus (COVID-19) pandemic. 皇冠体育app CMA has been conscious of the exceptional pressures on the hospitals at this time when finalising its investigation.
Looking ahead to future hospital mergers, the CMA is aware of longer-term plans to exempt mergers between NHS hospitals from CMA review, which it fully supports.
For more information, visit the CMA鈥檚 dedicated webpage for the Royal Bournemouth and Christchurch Hospitals / Poole Hospital NHS Foundation Trusts merger investigation.
For media enquiries, contact the CMA press team on 020 3738 6460 or [email protected].