After completing its initial Phase 1 investigation, the
Competition and Markets Authority (CMA) has found that
the merger could result in a substantial reduction in
competition between private healthcare services in Bath
and Birmingham. Circle and BMI do, or will, compete
closely in these cities and there are limited other
competitors available for patients.
The CMA is concerned that if the businesses were to
merge, patients who pay for their own healthcare in
Birmingham and Bath could face higher prices and that NHS
and privately funded patients could face a lower quality
of service in those areas.
As part of its assessment, the CMA has taken into account
the impact of the Coronavirus (COVID-19) outbreak by
considering not only the current provision of private
healthcare but also how this is likely to impact the
opening of new hospitals both by the merged company and
their competitors.
Joel Bamford, CMA Senior Director said:
If local concerns can be overcome, we will clear this
merger. At the moment though, we have found that it if
it goes ahead as planned, competition will be reduced
and it could negatively impact patients in Bath and
Birmingham.
We recognise that this is a difficult time, with
private hospitals having effectively put their entire
hospital capacity temporarily under the control of the
NHS to deal with the Coronavirus (COVID-19) outbreak.
It remains important that we protect competition
between private healthcare providers and the benefits
it can bring to patients.
The companies now have until Friday 17 April 2020 to
address these concerns. If they are unable to do so, the
deal will be referred for an in-depth Phase 2
investigation.
For more information, visit the Circle Health/BMI
Healthcare merger inquiry case page.
