Debbie Abrahams – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Debbie Abrahams on 2014-06-25.

To ask the Secretary of State for Business, Innovation and Skills, how much the (a) Competition Commission and (b) Office of Fair Trading spent on assessing mergers in the NHS in (a) 2012-13 and (b) 2013-14.

Jo Swinson

The Competition Commission’s (CC’s) inquiry into the proposed merger between Royal Bournemouth and Christchurch Hospitals Foundation Trust and Poole Hospital Foundation Trust, which was concluded in 2013/14, was the Commission’s only assessment of an NHS Foundation Trust merger. The cost of this inquiry was £710,000, which includes the cost of the staff on the inquiry amounting to £639,000 and direct costs of £71,000 (including survey costs).

The Office of Fair Trading (OFT) did not collect specific information on the resources used in considering mergers involving NHS Foundation Trusts. However, the average approximate cost involved in scrutiny of a merger by the OFT was £20,000; in total, the OFT considered four mergers involving NHS Foundation Trusts in 2012-13 and 2013-14, of which only one was referred for further scrutiny by the CC.