The CMA‘s initial investigation found the medtech deal between the data management systems supplier and the software supplier could dramatically reduce competition, leading to worse outcomes for the NHS.

These outcomes would ultimately fall upon patients who are already struggling with long wait times and delayed discharges, as well as  being a potentially greater burden on taxpayers without any service improvements.

While the NHS is increasingly seeking digital and data-driven solutions to help improve the delivery of healthcare in the UK, the national service has been outsourcing its data management and software suppliers to two companies.

EMIS is a large and established supplier of data management systems to the NHS, according to the government, and supplies electronic patient record systems used by the majority of NHS GPs in the UK.

Optom, part of the US healthcare giant UnitedHealth, currently supplies software used by GPs when prescribing medicines, as well as data analytics and advisory services that the NHS uses to help improve overall healthcare and health service provision through population health management.

As part of its Phase 1 investigation, the CMA looked into these services and how UnitedHealth’s purchase of EMIS may impact competition and develop and supply digital and data analytics products to the NHS.

The investigation found competition could be substantially reduced specifically in the Population Health Management and medicine optimisation software markets, which enable the safe and effective use of medicines.

The CMA is concerned the deal could impact services provided by Optum’s competitors, as they both rely on digital connections to the data that EMIS holds, and integrations with EMIS’s elecronic patient record system.

If the goes went ahead as planned, Optum could choose to limit these connections, a move the CMA believes could unfairly undermine competing businesses.

The NHS, as the customer of these products, would therefore face fewer options and higher prices or lower quality offerings.

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Sorcha O’Carroll, Senior Mergers Director at the CMA, said: “The NHS and the millions of patients under its care depend on critical behind-the-scenes technology to ensure people are looked after and receive the treatment needed to get better.

“This deal could see the NHS lose out on the benefits of competition, including innovation in these products and services and getting better value for money. UnitedHealth has the opportunity to address our concerns, otherwise it will progress to a more in-depth investigation.”

UnitedHealth and EMIS have been offered five working days to provide legally binding proposals to the CMA to address these concerns, after which the CMA would have a further five working days to consider if their response is proportionate or if further proceedings must take place.