UnitedHealth's buyout of UK's EMIS could reduce competition: UK watchdog
- Reference: 1679319274
- News link: https://www.theregister.co.uk/2023/03/20/emis_buyout_cma_probe/
- Source link:
The Competition and Markets Authority's (CMA) initial investigation has found competition could be substantially reduced, specifically in the market for software which enables the safe and effective use of medicines.
Under UK law, if a merger is deemed likely to reduce competition substantially, the CMA has the power to block it or impose remedies to address those concerns, as it did with [1]Meta and Giphy , for example.
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Today, the CMA pointed out that EMIS is a large and established supplier of data management systems to the NHS. Within its portfolio are electronic patient record system used by the majority of NHS GPs in the UK.
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Meanwhile, Optum, a UnitedHealth company, 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, also known as population health management.
In a statement, CMA senior mergers director Sorcha O’Carroll said: “The NHS and the millions of patients under its care depend on critical behind-the-scenes technology to ensure people are looked after and receive the treatment needed to get better.
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“This deal could see the NHS lose out on the benefits of competition, including innovation in these products and services and getting better value for money. UnitedHealth has the opportunity to address our concerns, otherwise it will progress to a more in-depth investigation,” she added.
In a statement sent to The Register , UnitedHealth's Optum UK said of the probe:
"We note the announcement today by the CMA following the conclusion of their initial review of our proposed acquisition of EMIS plc. With the full support of EMIS, we look forward to working with the CMA to agree upon suitable undertakings in lieu of reference to Phase II and obtaining the clearance necessary to successfully close our acquisition of EMIS. A further update is expected to be provided on or around 31 March 2023."
[6]US lawsuit alleges tool used by hospitals shares patient data with Meta
[7]Hitting the mother-node: TigerGraph devours $105m funding in Series C round
[8]Primary care trusts offered data analysis service
[9]NHS threatened with legal action over £480m patient data platform
In June last year, the [10]US health insurance company agreed to buy EMIS in an all-cash deal valuing the UK tech biz at around £1.24 billion and — according to a January statement — expects to close the deal late Q1 or early Q2.
The CMA said EMIS had five working days from Friday to offer legally binding proposals addressing the concerns it identified. The CMA would then have a further five working days to consider whether the response addressed its concerns or if the case merits further investigation.
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The CMA said it was concerned the deal could impact services provided by Optum’s competitors because they rely on digital connections to the data that EMIS holds and integrations with EMIS’s electronic patient record system. The CMA argued that Optum could limit these connections if the merger went ahead. The result could mean less competition among tech providers and higher prices, it said. ®
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[1] https://www.theregister.com/2022/10/18/meta_facebook_giphy_cma_/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZBiRL-xCtI@SQX@I1en0bgAAAM8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZBiRL-xCtI@SQX@I1en0bgAAAM8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZBiRL-xCtI@SQX@I1en0bgAAAM8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZBiRL-xCtI@SQX@I1en0bgAAAM8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/06/20/us_lawsuit_alleges_meta_tool/
[7] https://www.theregister.com/2021/02/17/tigergraph_105m_funding/
[8] https://www.theregister.com/2007/10/08/pct_data_analysis/
[9] https://www.theregister.com/2023/03/17/nhs_threatened_with_legal_action/
[10] https://www.bloomberg.com/news/articles/2022-06-17/unitedhealth-unit-to-acquire-u-k-s-emis-for-1-5-billion
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZBiRL-xCtI@SQX@I1en0bgAAAM8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
WTF!
How is this not just buying a pile of personal data on the whole UK population?
A "Brexit Dividend" not for us, but for American companies who are lining up to exploit us, now that those pesky European data protection laws no longer apply.
As the UK government runs the NHS into the ground, I bet the US Health Insurance market is licking its lips in anticipation of the privatisation of the UK health system - and would like to get their grubby hands on all of our health data beforehand so they can rig their prices for maximum profit.
Re: WTF!
Not sure that Brexit has anything to do with this.
More that the Conservatives will allow anything to be sold to anyone regardless of the impact.
Just like Palantir, they simply don't give a stuff as longs as they continue to get all sorts of perks to facilitate the deals.
Whether Labour (or anyone else for that matter) would actually stop these deals is another thing altogether.
That there is a very high chance of BJ being PM again is the most scary thing. The entire lot are utterly divorced from reality.
Re: WTF!
BJ as PM?
Before the next election?
Need to find someway to disqualify him.
It is notable that my MP is standing down, as are a few in the area.
Re: WTF!
We are a free market economy and so the default answer has been that you can buy something, unless there are compelling reasons you shouldn't be able to. Labour was definitely absolutely no better in that regard back when they were in power.
My personal view in this case is that they shouldn't be able to buy EMIS; at the point I worked in NHS IT it was hands down the most popular bit of software amongst GP's because the original version had been written by a GP to make his life simpler back in the 80's, and GP's considered EMIS to be the best system on the market. In our county my recollection is that EMIS had around an 80% market share, but that's a good decade and more out of date at this stage.
Given that EMIS competes directly against United Health's software the most obvious purpose of United Health buying EMIS would be them using money from the US to establish a monopoly in the UK, with the other option being that it's a leveraged buyout which would be paid for by jacking up licensing fees for EMIS.
I can't see the benefit to either circumstance, and under the circumstances I wouldn't trust breezy assurances from them on the subject.
Isn't there a legal get out?
That NHS could ignore the rise and tell them to do one?