FTC orders divestitures in Sevita deal

The Federal Trade Commission announced it is taking action to address antitrust concerns tied to Sevita Health’s proposed $835 million dollar acquisition of BrightSpring Health Services’ community living business, ResCare. The agency’s description is notably direct for the IDD sector, framing the deal as a combination of the two largest national providers of residential IDD services. According to the FTC, the transaction would have reduced quality and choice in certain local markets without remedies.

Consent order requires 128 ICF divestitures

Under a proposed consent order, Sevita must divest 128 intermediate care facilities (ICFs) and associated assets, including day-training programs, across Indiana, Louisiana, and Texas. The FTC said the divested properties will be acquired by Dungarvin. The consent package is subject to a 30-day public comment period. It also includes a 10-year prior-notification requirement for Sevita for acquisitions of ICF/IDD assets in relevant statistical areas tied to the divestiture locations.

Quality of care cited as a competition factor

In outlining its concerns, the FTC emphasized that “quality of care” variables can function as competitive dimensions in residential IDD services. The agency specifically pointed to staffing levels and training, care standards, safety protocols, and individualized services as areas that could degrade under excessive concentration. By tying consolidation risk to these operational and clinical factors, the FTC positioned quality and choice as core issues in evaluating market impact, not only price or scale.