Competition specialists from Addleshaw Goddard’s Healthcare sector team have advised on the Derby and Burton Foundation Trust merger. This is only the second NHS merger to be cleared at Phase One on the basis of patient benefits.
Following its review of the merger, the CMA decided that the benefits to patients across a number of specialities for the combined Trust outweighed any potential competition concerns with regards to the overlap in a number of healthcare services offered by both.
Strongly supported by NHS Improvement (NHSI), the regulator of NHS Trusts, the merger will enable both Trusts to better manage their resources and provide sustainable and improved services to patients across Derbyshire and East Staffordshire going forward.
This is only the second time the CMA has given clearance to an NHS merger in Phase 1, following the clearance of the merger of two Birmingham hospital trusts. Whilst the Trusts in this case overlap in a number of healthcare services, we were able to persuade the CMA that against a challenging backdrop, the substantial expected benefits to patients outweighed any potential competition concerns. We worked closely with a team of competition economists at KPMG on the matter, and our transactional healthcare team (Mike O'Connor, Stephanie Townley) are now working to complete the transaction. This is a high profile and significant result as more NHS Trusts consider their position in the current climate of capacity and financial pressures.
The AG competition team was led by Partner Rona Bar-Isaac and Associate Alice Brunton, alongside Head of Healthcare, Mike O'Connor and Stephanie Townley from the firm's transactional healthcare team.
Rona Bar-Isaac, Partner at Addleshaw Goddard stated; "The merger of Derby and Burton Foundation Trusts is a hugely positive sign for the sector. Whilst the Trusts overlapped in a number of healthcare services, we were able to persuade the CMA that against a challenging backdrop, the substantial expected benefits to patients outweighed the concerns. This is a high profile and significant result as more NHS Trusts consider their position in the current challenging environment."
Addleshaw Goddard's Healthcare cross-disciplinary team has in-depth knowledge and hands on expertise across every aspect of healthcare and is recognised as one of the UK's leading firms, having advised on a number of the most significant transactions in the sector.