WASHINGTON, D.C. — The Federal Trade Commission has finalized an order requiring Sevita Health to divest 128 intermediate care facilities and related assets as a condition of its acquisition of BrightSpring Health Services’ community living business, concluding the merger would otherwise reduce competition in several state markets.
The order resolves antitrust concerns raised by the FTC over Sevita’s purchase of ResCare Community Living, BrightSpring’s community living division, which provides services to individuals with intellectual and developmental disabilities.
Federal regulators alleged the transaction would reduce consumer choice and potentially diminish the quality of care for intermediate care facility (ICF) services in certain markets across Indiana, Louisiana and Texas.
To address those concerns, the FTC is requiring Sevita to sell 128 ICF facilities, along with associated assets including day-training programs, to Dungarvin Group Inc., a provider with experience operating similar facilities.
The final order also requires Sevita to support the transfer by assisting Dungarvin in securing all licenses, permits, certifications and other regulatory approvals necessary to operate the facilities.
Intermediate care facilities provide residential and support services for individuals with intellectual and developmental disabilities, making them a critical component of long-term care systems in many states.
The FTC concluded the divestitures were necessary to preserve competition and maintain service options for consumers who rely on those facilities and programs.
The commission approved the final order by a 2-0 vote following a public comment period.
The action closes the agency’s review of the transaction while allowing the acquisition to proceed subject to the required asset sales and compliance conditions.
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