HCA may not have to divest
Hospital group HCA may not have to sell off some of its hospitals after all following a change of heart by the Competition and Markets Authority (CMA) in its latest provisional report.
The body said its view came after hearing new evidence about the likelihood of more private hospitals opening in London.
Roger Witcomb, chairman of the CMA’s Private Healthcare Market Remittal Group, explained: ‘We still believe the market requires more competition, but the new information we have received in the course of the remittal means that we now believe that divestment is no longer a proportionate remedy.’
He said any benefits to ‘consumers’ of a divestment would be short-lived and not large enough to outweigh the cost of selling. The group had found no other remedy which was both effective and proportionate.
The decision was ‘finely balanced’ and not unanimous. ‘We will of course consider responses to this provisional decision before making a final decision on remedies.’
Parties were given only until 13 April to respond.