The Federal Trade Commission (FTC) has taken decisive action to protect individuals with intellectual and developmental disabilities by requiring Sevita Health to divest 128 healthcare facilities as part of its proposed $835 million acquisition of BrightSpring Health Services' community living business.

This acquisition would have combined the two largest national providers of residential services for individuals with intellectual and developmental disabilities (IDD), raising significant antitrust concerns. The FTC's proposed consent order aims to maintain competition in the market, ensuring that quality of care and options for services remain available to vulnerable populations.

Under the terms of the consent order, Sevita will divest facilities located in Indiana, Louisiana, and Texas to Dungarvin Group, Inc., a reputable operator of intermediate care facilities (ICFs). The FTC's complaint highlights that the merger would reduce competition, potentially leading to a decline in care quality and fewer choices for families seeking services for their loved ones.

FTC Director Daniel Guarnera emphasized the importance of competition in healthcare markets, stating that the action ensures continued benefits for individuals with IDD and their families. The complaint alleges that the merger would eliminate critical competition between Sevita and BrightSpring, which is essential for maintaining high standards of care and service variety.

The proposed order includes specific requirements for Sevita, such as assisting Dungarvin in obtaining necessary licenses and cooperating with the hiring of divestiture facility employees. Additionally, Sevita is restricted from acquiring any interests in ICFs within the same areas as the divested facilities for a period of ten years without prior notification to the FTC.

The public will have 30 days to comment on the proposed consent agreement, which will be considered before finalizing the order.