The Federal Trade Commission (FTC) has required Sevita Health to divest more than 100 healthcare facilities as a condition for approving its proposed $835 million acquisition of BrightSpring Health Services, Inc.’s community living business. The move aims to address antitrust concerns and protect individuals with intellectual and developmental disabilities (IDD).
Sevita, which is owned by Centerbridge Seaport Acquisition Fund, L.P., plans to acquire ResCare Community Living from BrightSpring. Both companies are the largest national providers of residential services for people with IDD.
Under the FTC’s proposed consent order, Sevita must divest 128 intermediate care facilities and other assets such as day-training programs in Indiana, Louisiana, and Texas. These assets will be transferred to Dungarvin Group, Inc., an established operator in the field.
The FTC alleges that without these divestitures, the merger would have reduced competition between Sevita and BrightSpring. This could have led to lower quality of care and fewer choices for families seeking IDD services in specific markets across Indiana, Louisiana, and Texas.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, stated: “The FTC’s action today ensures that individuals with intellectual and developmental disabilities and their families continue to benefit from competition between community living providers. In the relevant geographic markets, this acquisition threatened to limit healthcare facility options and degrade the quality of care for those with intellectual and developmental disabilities. The FTC will continue to actively review acquisitions in healthcare markets to ensure that competition is driving higher quality care for all Americans—including some of our nation’s most vulnerable citizens.”
According to the complaint filed by the FTC, reducing competition could decrease incentives for investment in facilities or improvements in staffing levels, training standards, safety protocols, and individualized services—key factors affecting vulnerable populations. Fewer provider choices may also restrict families’ ability to select appropriate care aligned with their needs.
The proposed consent order includes several conditions:
- Sevita must assist Dungarvin in obtaining necessary licenses or certifications.
- For one year after divestiture, Sevita must help Dungarvin evaluate employment offers for affected staff.
- For ten years following the order's issuance, Sevita cannot acquire interests in any similar facility within certain areas of Indiana, Louisiana, or Texas without notifying the Commission first.
The Commission voted 2-0 to issue both the complaint and accept the agreement for public comment. The public can submit comments on Regulations.gov during a 30-day period before final approval.
A consent order issued by the Commission carries legal force regarding future actions once finalized.
For further information about how competition impacts consumers or details on filing antitrust complaints or commenting on mergers visit https://www.ftc.gov/.
