The UK Competition Authority finds there is insufficient evidence that a merger in the hospital sector could provide specific benefits for patients which would outweigh the harm from the loss of competition and choice (Dorset Foundation Trusts)

Article published on Centre for Competition Policy blog.

The Meaning of ‘Relevant Customer Benefits’ in the Context of Health Care: Monitor’s Advice and the Competition Commission’s Response to the Dorset Foundation Trusts' merger* [1] On 17 October, the Competition Commission (CC) blocked the proposed merger between Poole Hospital NHS Foundation Trust and The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust (hereafter “the Dorset FT merger”), the first to be assessed under the regime for Foundation Trusts (FTs) established by the Health and Social Care Act 2012 (HSCA 2012). This new regime sees Monitor providing advice regarding “relevant customer benefits” to the OFT, which – along with the CC – has exclusive competence to determine mergers between NHS FTs. The case suggests that a higher standard of ‘relevant customer

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