THE proposed hospital merger of Royal Bournemouth and Christchurch and Poole Hospital has been cleared by the Competition and Markets Authority.

In 2013, the Competition and Markets Authority’s (CMA) predecessor, the Competition Commission, prohibited a merger proposal between the hospital trusts, meaning they were required to enter into a 10-year commitment not to merge without the CMA’s permission.

When investigating an NHS hospital merger, the CMA considers the potential impact of that merger on competition between hospitals.

Since the Competition Commission’s decision, there have been significant changes to policy within the NHS that have affected the role that competition plays in the provision of public healthcare services.

The CMA’s investigation in this case has confirmed that competition between NHS hospitals now plays little role in the provision of NHS services in the east Dorset area, with collaboration often viewed as a better way to meet increasing demands for care and deliver better value.

In particular, the CMA found that the two hospital trusts have limited incentive to compete with each other, given the way that they are now funded, and so there would be no significant loss of competition in this area after the deal.

It has therefore concluded that the merger does not give rise to competition concerns and should be cleared.

Throughout its investigation, the CMA worked closely with the sector regulator, NHS Improvement, and engaged with local commissioners, who are responsible for planning and commissioning healthcare services in their local area.

Debbie Fleming, joint Chief Executive of Poole Hospital and The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trusts, said: “This announcement is very welcome news as our hospitals will be much stronger working together to make the best use of our resources.

"Our two trusts have never worked more closely together than now to provide the best care possible for our region and I am delighted with the CMA’s findings to allow us to progress together.”  

David Moss, joint chairman, said: “Our merger and the creation of University Hospitals Dorset NHS Foundation Trust is a great opportunity to bring about further improvements in the services we provide.

"We thank the CMA for all their work in reaching their decision which considered all views and evidence provided by patients and their representative groups, local authorities and other interested bodies.

"We look forward to working very closely with all these groups as we further develop our plans for the future of our hospitals.”