17.10.17
CMA: East Midlands MH merger to negatively affect care for patients
CCGs in the East Midlands will be negatively affected by the merger of two specialised service providers.
An investigation by the Competition and Markets Authority (CMA) concluded that competition in male mental health providers would be “substantially” reduced by the deal.
Cambian Adult Services were acquired by Universal Health Services, Inc. (UHS) – through its subsidiary Cygnet Health Care Limited – in December 2016. Both companies run hospitals which provide rehabilitation services for patients suffering from long-term mental illness.
The deal is seen as particularly negative as it makes UHS by far the largest provider of male mental health rehabilitation in the region.
The independent government investigator cleared other regions of the merger, including female mental health concerns in the West Midlands, but has raised serious worries about this particular sector.
Simon Polito, chair of the CMA inquiry group, explained the decision: “Mental health hospitals are a vital part of our healthcare system, caring for some of the most vulnerable in our society.
“CCGs, who are under increasing budget pressure, should have access to a range of facilities and treatment options so they can ensure the best possible care.
“We have found that this merger could affect the quality and price of mental health rehabilitation services for male patients in the East Midlands. The companies must now sell off one of their hospitals in this region.”
The CMA recently approved the merger of two university hospitals in Manchester which had been the subject of similar discussions surrounding the benefits it would provide for patients.
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