UnitedHealth Group EMIS merger: timetable and key factors in the CMA's decision

Exec Summary:

The proposed UnitedHealth Group EMIS merger is currently being investigated by the Competition and Markets Authority (CMA) in the UK. The CMA is a government agency that is responsible for investigating mergers and acquisitions to ensure that they do not harm competition. The CMA has until July 12, 2023 to make a decision on whether or not to approve the merger.

There are a number of factors that could affect the CMA's decision. These factors include:

• The impact of the merger on competition: The CMA will consider whether the merger will reduce competition in the market for healthcare IT services. If the CMA believes that the merger will reduce competition, it is likely to block the merger.

• The impact of the merger on consumers: The CMA will also consider the impact of the merger on consumers. If the CMA believes that the merger will lead to higher prices or lower quality of service for consumers, it is likely to block the merger.

• The views of third parties: The CMA will also consider the views of third parties, such as patient groups, healthcare providers, and other businesses in the healthcare IT sector. If the CMA receives a lot of negative feedback from third parties, it is more likely to block the merger.

Overall, it is too early to say how likely the UnitedHealth Group EMIS merger is to go ahead. The CMA's decision will depend on a number of factors, including the impact of the merger on competition and consumers.

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Background:

• In January 2023, UnitedHealth Group announced that it would acquire EMIS Group Plc for £1.2 billion.

• EMIS Group is a UK-based healthcare software company that provides a range of products and services to healthcare providers, including electronic health records (EHRs), patient management systems, and clinical decision support tools.

• UnitedHealth Group is a US-based healthcare company that provides a range of healthcare-related products and services, including health insurance, healthcare management, and health data analytics.

• The merger was met with opposition from some patient groups and healthcare providers, who argued that it would reduce competition and lead to higher prices.

• The Competition and Markets Authority (CMA) in the UK is currently investigating the merger to determine if it will reduce competition in the market for healthcare IT services.

• The CMA has until July 12, 2023 to make a decision on whether or not to approve the merger.

Here are some of the key issues that the CMA is likely to consider when making its decision:

• The impact of the merger on competition: The CMA will consider whether the merger will reduce competition in the market for healthcare IT services. If the CMA believes that the merger will reduce competition, it is likely to block the merger.

• The impact of the merger on consumers: The CMA will also consider the impact of the merger on consumers. If the CMA believes that the merger will lead to higher prices or lower quality of service for consumers, it is likely to block the merger.

• The views of third parties: The CMA will also consider the views of third parties, such as patient groups, healthcare providers, and other businesses in the healthcare IT sector. If the CMA receives a lot of negative feedback from third parties, it is more likely to block the merger.

UNITEDHEALTH / EMIS Merger Enquiry Timetable

5 October 2023 - Statutory deadline

Late September 2023 - Publish final report

Late August 2023 - Final deadline for all parties’ responses/submissions

August 2023 - Consider possible remedies and response hearing(s), (if required)

Early August 2023 - Notifying provisional findings and considering possible remedies

Late July 2023 - Deadline for all parties’ responses/submissions before provisional findings

July 2023 - Main party hearings; verifying information; considering provisional findings

Mid-May 2023 - Publish issues statement

April to May 2023 - Gathering info, issuing questionnaires, 3rd party hearings, and site visit

31 March 2023 - Merger reference made

Arguments for and against the UnitedHealth Group EMIS merger:

Arguments in favour of the merger:

• The merger would create a more comprehensive healthcare IT platform: UnitedHealth Group and EMIS are both major providers of healthcare IT solutions. The merger would combine their strengths and create a more comprehensive platform that could better serve the needs of healthcare providers and patients.

• The merger would allow UnitedHealth Group to expand its reach into the UK market: UnitedHealth Group is a major player in the US healthcare market. The merger would allow it to expand its reach into the UK market, which is a growing market for healthcare IT solutions.

• The merger would create jobs: The merger would create jobs in the UK. UnitedHealth Group has said that it plans to invest £1 billion in the UK over the next five years. This investment would help to create jobs in the healthcare IT sector and other sectors of the economy.

Arguments against the merger:

• The merger would reduce competition: UnitedHealth Group is a large player in the healthcare industry. The merger would give it a larger market share in the healthcare IT sector. This could lead to higher prices and lower quality of service for consumers.

• The merger would give UnitedHealth Group too much power: UnitedHealth Group is already a large and powerful company. The merger would give it even more power. This could lead to concerns about patient privacy and data security.

• The merger would not be in the best interests of patients: The merger would be driven by profit, not by the needs of patients. This could lead to higher prices, lower quality of care, and less choice for patients.

Overall, there are both pros and cons to the UnitedHealth Group EMIS merger. The CMA will need to weigh these factors carefully before making a decision on whether or not to approve the merger.

3 key factors in the CMA's decision on the UnitedHealth Group EMIS merger

• The impact of the merger on competition: The CMA will consider whether the merger will reduce competition in the market for healthcare IT services. This will depend on a number of factors, including the size and market share of the merging companies, the number of other competitors in the market, and the barriers to entry for new businesses.

• The impact of the merger on consumers: The CMA will also consider the impact of the merger on consumers. This will depend on a number of factors, including the prices of healthcare IT services, the quality of service, and the choice of providers available to consumers.

• The views of third parties: The CMA will also consider the views of third parties, such as patient groups, healthcare providers, and other businesses in the healthcare IT sector. These parties may provide evidence to the CMA about the potential impact of the merger on competition and consumers.

Overall, the CMA's decision on the UnitedHealth Group EMIS merger will depend on a number of factors, including the impact of the merger on competition and consumers. The CMA is expected to make its decision by July 12, 2023.

Engage with the HealthTech Community

HealthTech M&A Newsletter from Nelson Advisors - Market Insights & Analysis for Founders & Investors. Subscribe today! https://lnkd.in/e5hTp_xb

HealthTech M&A Advisory by Founders for Founders, Owners & Investors. Buy Side, Sell Side, Growth and Strategy mandates - Email lloyd@nelsonadvisors.co.uk

HealthTech Thought Leadership from Nelson Advisors - Industry Insights & Analysis for Founders, Owners & Investors. Visit https://www.healthcare.digital