The Jersey Competition Regulatory Authority (JCRA) has conditionally approved the acquisition of two of the Island’s care homes businesses.
The acquisition of Silver Springs and La Haule, by local provider LV Group, is subject to legally binding conditions.
The transaction will see LV Group, already a significant care home operator in Jersey, expand its presence to operate seven care homes across the Island.
Following a detailed review, the JCRA has determined that while the deal raises concerns about reduced competition – particularly regarding private pricing and access for residents supported by Jersey’s Long-Term Care (LTC) scheme – those concerns could be addressed by a package of remedies.
Under Article 22 of the Competition (Jersey) Law 2005, where a transaction may otherwise not be approved, the JCRA can impose conditions to ensure continued protection for consumers and the market.
Following consultation with stakeholders, further analysis and market testing, the JCRA has approved the transaction, with the following continuing conditions:
- Condition 1: Provides protection for private prices both now and in the future, with future prices only able to increase in line with the annual increase in the LTC rate set by Government.
- Condition 2: Ensures that at least 60% of beds across Silver Springs and La Haule are reserved for LTC-funded residents. Within that, there is a further safeguard for wholly LTC-funded residents.
- Condition 3: Formalises the compliance requirements and will ensure effective implementation of the remedies.
These conditions are legally binding on LV Group, its directors, officers and subsidiaries.
Tim Ringsdore (pictured), CEO of the JCRA, said: “This decision balances the importance of continuity of care and investment in the sector with the need to protect vulnerable residents and maintain fair pricing. The remedies protect existing and prospective care home residents and ensures continued fair competition in the care home market. These would not have been achieved without the JCRA’s thorough review.
“We are grateful for the input of stakeholders, including Government and the care sector, throughout the review process.”
