A multi-billion dollar deal could send prices skyrocketing for NHS – competition watchdogs

The Competition and Markets Authority (CMA) gave UnitedHealth and Emis five days to come up with a plan to address some of their concerns — or risk the watchdog blocking the deal.

UnitedHealth announced its plan to acquire Emis last June. The deal would combine its Optum subsidiary with Emis in the UK.

The new company would have an “improved ability to deliver important benefits to patients, doctors and the NHS,” the companies said at the time.

Healthcare has recently turned to digital and data solutions to improve care in the UK.

Emis already supplies them with data management systems, including electronic health records, used by most GP practices.

General practitioners also use Optum’s software to prescribe medication, among other things.

After the first phase of its investigation, the CMA fears the deal could reduce competition for two types of software.

Optum’s competitors rely on the use of the data stored in the Emis systems. If the deal goes through, the watchdog says, Optum would be able to limit its competitors’ use of that data and unfairly undermine it.

That would leave fewer opportunities for the NHS to shop around and potentially drive up prices or reduce the quality of service it receives, the CMA fears.

Sorcha O’Carroll, Senior Mergers Director, said: “The NHS and the millions of patients it serves depend on critical behind-the-scenes technology to ensure people are cared for and given the treatment they need to get better.

“This deal could result in the NHS losing the advantages of competition, including innovation in these products and services and better value for money.

“UnitedHealth has an opportunity to address our concerns, otherwise it will move on to a deeper investigation.”