FTC Orders Sevita Health Divestiture to Preserve Competition in IDD Services Market

USA: FTC Orders Sevita Health Divestiture to Preserve Competition in IDD Services Market

A federal antitrust action announced on Jan. 30, 2026, will require Sevita Health to sell more than 100 healthcare facilities to resolve competition concerns tied to its $835 million acquisition of BrightSpring Health Services’ community‑living business.

Background of the Transaction

Sevita Health, a subsidiary of Centerbridge Seaport Acquisition Fund, L.P., sought to acquire BrightSpring’s ResCare Community Living operation, which together would create the two largest national providers of residential services for individuals with intellectual and developmental disabilities (IDD).

FTC’s Antitrust Concerns

According to the FTC’s proposed consent order, the merger would have eliminated a key source of competition in several markets, potentially reducing the quality of care and limiting options for families of individuals with IDD. The agency argued that competition between Sevita and BrightSpring has been essential for maintaining standards in staffing, training, safety protocols, and individualized services.

Divestiture Requirements

The order mandates that Sevita divest 128 intermediate care facilities (ICFs) located in Indiana, Louisiana, and Texas, along with associated day‑training programs. Dungarvin Group, Inc., an experienced operator of ICFs, will acquire the facilities. Sevita must also assist Dungarvin in securing all necessary licenses, permits, and certifications, and cooperate on employee transition for up to one year after the divestiture.

Long‑Term Restrictions

For a period of 10 years following the consent order, Sevita is prohibited from acquiring any interest in ICF/IDD facilities within the same core‑based statistical areas in the three states without prior written notice to the FTC.

Impact on Care and Competition

Critics of the merger contend that eliminating one of the two major providers could diminish incentives to invest in facility improvements and reduce the variety of options available to families. The FTC maintains that preserving competition will help sustain higher quality care for a vulnerable population.

Public Comment Process

The Commission’s vote to issue the complaint and accept the consent agreement was 2‑0. The public has 30 days to submit comments on the proposed consent agreement package, with instructions posted on Regulations.gov.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.