BMI and Circle merger hospital sales being reviewed

The competition regulator is reviewing the hospital sales and other mitigating measures proposed by BMI Healthcare and Circle Health which allowed the merger of the two hospital groups to proceed.

A Competition and Markets Authority (CMA) investigation into the merger last year cited concerns of potential market dominance, in particular regarding private hospital provision in Bath and Birmingham.

As a result, in June 2020 the group agreed to sell the Circle Bath Hospital and Circle Birmingham Hospital, which the CMA provisionally accepted.

The regulator also told the now combined Circle Health Group to appoint a trustee to look after operations at the two hospitals and ensure they were running well and fit for sale.

Now the CMA has announced it will review these undertakings made by the group and whether they are still suitable or if changes need to be made.

“The review will consider whether there has been any change of circumstances such that the current undertakings are no longer appropriate and should be varied or superseded,” the CMA said.

“A statement of the CMA’s reasons for commencing the review will be published shortly.”

The regulator will spend August and September gathering evidence, before publishing and consulting on its provisional decisions.

It expects to have a final decision in November.

 

Health & Protection has contacted the CMA and Circle Health Group for responses and further information about the review.

 

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