In 2026, BrightSpring Health Services completed its sale of ResCare Community Living to Sevita for $835 million. Sevita and ResCare both provide residential and community-based services, including healthcare, to individuals with intellectual and developmental disabilities. In addition to other regulators, the transaction was reviewed by California’s Office of Health Care Affordability (OHCA). Since its establishment in 2022, OHCA has been responsible for assessing health care market consolidation through Cost and Market Impact Reviews (CMIRs). OHCA may initiate a CMIR if it determines a proposed transaction is likely to have significant competitive, market, or affordability impacts.
To review this transaction, OHCA retained Bates White. Nitin Dua assisted OHCA with authoring the CMIR. Dr. Dua analyzed market consolidation, examined trends in parties’ financial and quality metrics, and assessed likely risks to quality and access post-transaction. The analysis concluded that while the transaction is unlikely to increase healthcare costs, harm competition for labor, or further a trend of consolidation, it is likely to increase the risk of reduced quality and access due to Sevita’s weak quality record and its private equity owners’ aggressive financial practices.
The final CMIR, released on April 8, 2026, was OHCA’s first published CMIR. Dr. Dua presented the findings to California’s Health Care Affordability Board, a decision-making body that sets state and sector-specific healthcare spending targets. The Board members expressed appreciation for the report’s “thoroughness” and “methodological soundness,” with one Board member commenting, “I want to appreciate and really respect the approach this analysis took, and in pretty short order, especially going above and beyond the narrow market competition analysis.”
The team supporting Dr. Dua included Saurav Karki, Anirudh Jayanti, Michelle Lam, and Quelly Ramos.
The team
Partner
Partner
The team also includes
- Manager
- Senior Economist
- Senior Consultant
