News story

CMA consults on mental healthcare merger remedies

The CMA is consulting on proposals from Acadia to sell 22 Partnerships in Care (PiC) and Priory hospitals to remedy competition concerns.

Therapy.

On 14 July 2016 the Competition and Markets Authority (CMA) found that there is a realistic prospect that Acadia Healthcare Company Inc’s acquisition of Priory Group No.1 Ltd could lead to a substantial lessening of competition (SLC) in 21 areas across 5 mental healthcare services provided to NHS organisations and local authorities in England and Wales.

The CMA said in July that it would give detailed consideration to undertakings offered by Acadia to sell a portfolio of hospitals to an approved upfront buyer, to address these concerns, instead of referring the merger for an in-depth investigation.

Acadia is now proposing to divest 22 hospitals, supplying a range of mental health services and rehabilitation services (listed in Annex 1 of the notice of consultation (PDF, 243KB, 12 pages) ), and has proposed either Advent or BC Partners as the upfront buyer.

Before reaching a final decision the CMA is inviting interested parties to comment on whether the proposed undertakings and the proposed buyers are appropriate to address the competition concerns that the CMA has identified.

Anyone wishing to respond to the CMA consultation should do so in writing, no later than 5pm on 22 October to maxwell.harris@cma.gov.uk or by post to:

Maxwell Harris
Competition and Markets Authority
Victoria House
Southampton Row
London WC1B 4AD

All information relating to this investigation can be found on case page.

Published 7 October 2016