REG - Competition and Mkts - Merger Update: UnitedHealth-Optum/EMIS

UnitedhealthAnnouncement

11/08/2023 08:15

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RNS Number : 0062J  Competition and Markets Authority  11 August 2023

CMA provisionally clears NHS healthcare tech deal

The CMA has provisionally found no competition concerns in the deal between
specialist health care tech and software companies which provide services to
the NHS.

The Competition and Markets Authority (CMA) has provisionally cleared
UnitedHealth's proposed £1.2bn purchase of EMIS following an in-depth
investigation.

The NHS is increasingly seeking digital and data-driven solutions to help
improve the delivery of healthcare in the UK. EMIS supplies data management
systems to the NHS, including the electronic patient record system used by the
majority of NHS GPs in the UK. Optum, part of the US healthcare giant
UnitedHealth, currently supplies software used by GPs when prescribing
medicines, as well as data analytics and advisory services that the NHS uses
to help improve overall healthcare and health service provision.

While the merging businesses do not supply competing services, Optum and its
competitors use the data that EMIS holds and integrate their own software with
EMIS's electronic patient record system to compete in other markets, including
the supply of population health management services and medicines optimisation
software.

A CMA Phase 1 investigation had identified initial concerns that the merger
ran the risk of worse outcomes for the NHS by reducing competition. These
concerns have been probed in more detail in a Phase 2 investigation overseen
by an independent panel which has now provisionally found the merger does not
raise competition concerns.

The investigation confirmed that EMIS, as the lead supplier to NHS GPs across
the UK, holds a particularly strong market position in the supply of
electronic patient record systems but, further evidence-gathering and analysis
found the combination of this position with Optum's activities should not
present competition concerns.

In the supply of population health management services, the independent panel
provisionally found that the merged business would not, in practice, be able
to use the EMIS business to harm the competitiveness of rivals. This is
primarily because the NHS would be able to use its oversight role to prevent
the merged business from pursuing this kind of strategy.

In relation to the supply of medicines optimisation software, the independent
panel has provisionally found that it would not be commercially beneficial for
the merged business to restrict access to EMIS's electronic patient record
system. In particular, a more detailed analysis of the market shows that such
a strategy would likely be unprofitable with any possible gains being limited
and capable of being reduced through intervention by the NHS.

Kirstin Baker, chair of the independent inquiry panel carrying out the
investigation, said:

"Digital technology and data analytics play an increasingly important role in
supporting high quality healthcare in the NHS and so it's important we
investigate this deal thoroughly.

"We want to ensure the NHS continues to benefit from innovation and
efficiencies brought about by technology services competing for its business.
After carefully considering a broad range of evidence, we have provisionally
found that this deal is not expected to harm competition or adversely affect
patients."

Today's findings are provisional, and the CMA will now consult on its findings
and listen to any further views before reaching a final decision.

The CMA welcomes responses from interested parties to its provisional findings
by Friday 1 September 2023. These will be considered ahead of the CMA issuing
its final report, which is due by 5 October 2023.

More information can be found on the CMA's Optum / EMIS case page
(https://www.gov.uk/cma-cases/unitedhealth-group-slash-emis-merger-inquiry) .

 

-ENDS-

NOTES TO EDITORS

 

1.   Optum is part of UnitedHealth Group Incorporated a large US healthcare
insurance, healthcare, and health data analytics business. In the UK, UH
operates through Optum Health Solutions (UK) Limited (Optum) and provides:

(a) Medicines optimisation (MO) software: MO software suggests alternatives to
doctors when they are prescribing medication in order to increase
effectiveness and reduce costs.

(b) Population health management (PHM) services which encompasses a broad
range of products and services that use data analytics to improve physical and
mental health outcomes across a population.

2.   EMIS is an established UK-based healthcare software business that
provides a range of IT solutions to the NHS, including a primary care
electronic patient record (EPR) system, EMIS Web. EMIS Web allows GPs to
manage appointment bookings, conduct patient consultations, and update, store
and share patient records. EMIS also offers EMIS-X Analytics (EXA), software
which allows users to conduct data analysis

3.   The CMA's Phase 1 investigation started on 20 January 2023 after the
companies announced the acquisition in 2022
(https://governance.emisgroupplc.com/) , and the deal was referred for a Phase
2 investigation on 31 March 2023.

4.   The CMA gathered and assessed a wide range of evidence, including
thousands of internal business documents from EMIS and Optum. The CMA also
gathered evidence from requests for information and calls with competitors as
well as customers across the NHS and from NHS England.

5.   In a Phase 2 review, the panel considers whether it is more likely than
not that a deal will substantially lessen competition - a higher threshold
than Phase 1. Accordingly, some mergers that are referred to Phase 2 will
ultimately be cleared.

6.   A further explanation of Population Health Management can be found on
the NHS website
(https://www.england.nhs.uk/integratedcare/what-is-integrated-care/phm/) .

7.   For more information, journalists should contact the CMA press office
by email on press@cma.gov.uk (mailto:press@cma.gov.uk) or by phone on 020 3738
6460.

8.   All enquiries from the general public are directed to the CMA's General
Enquiries team on general.enquiries@cma.gov.uk
(mailto:general.enquiries@cma.gov.uk)   or 020 3738 6000.

 

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