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FTC requires Sevita to divest 100+ facilities to resolve antitrust concerns in BrightSpring deal

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Key takeaways

Follow Up Questions

Who is Sevita and what services does it provide?Expand

Sevita is a national provider of home- and community‑based specialty health care for people with intellectual and developmental disabilities (I/DD), complex care needs, brain injuries, autism, foster‑care youth and seniors. It operates nationwide (serving ~50,000 people across about 40 states) and delivers residential, day, behavioral and other community services; it is a subsidiary of Centerbridge Seaport Acquisition Fund, L.P.

What is BrightSpring’s "community living business" and who does it serve?Expand

BrightSpring’s “community living business” is ResCare Community Living — a line of residential and community‑based services for people with intellectual and developmental disabilities (I/DD) and related behavioral conditions. It served roughly 14,000 clients (with ~13,500 employees) and generated about $1.2 billion in 2024 revenue, according to BrightSpring.

How many facilities must Sevita divest exactly, and in which states or regions are they located?Expand

The FTC’s proposed order requires Sevita to divest exactly 128 intermediate care facilities (ICFs) and related assets (including day‑training programs). The divested facilities are located in Indiana, Louisiana and Texas.

What does "divest" mean here, and how will it affect patients and staff at those facilities?Expand

Here, “divest” means Sevita must sell or transfer ownership and related operating assets of the specified facilities to a third party to restore competition. The FTC’s order names Dungarvin Group, Inc. as the buyer; it requires Sevita to help obtain licenses/permits for operation and to assist Dungarvin in evaluating and offering employment to facility staff for up to one year after the divestiture—measures intended to preserve continuity of care for patients and offer hiring opportunities for employees during the transition.

What specific antitrust concerns did the FTC identify about the proposed acquisition?Expand

The FTC’s complaint said the deal would eliminate competition between the two largest national providers of ICF/IDD residential services in certain local markets — risking reduced quality, lower investment in facilities and staffing, and fewer provider choices for families. In short, the FTC concluded the acquisition threatened to reduce quality and choice for vulnerable I/DD patients in parts of Indiana, Louisiana and Texas.

What is the timeline and next steps for the proposed FTC order to take effect?Expand

The FTC issued a complaint and proposed consent order on Jan. 30, 2026 and opened the package for public comment for 30 days; after the public‑comment period the Commission may finalize the consent order, which—if issued—would have the force of law. (The press release notes the Commission vote to issue the complaint and accept the consent agreement for public comment was 2–0.)

Who would be eligible to buy or operate the divested facilities, and does the FTC name potential buyers?Expand

The FTC’s proposed order specifies the divested facilities will be acquired by Dungarvin Group, Inc.; the order therefore identifies the buyer rather than leaving buyer selection open. (The order also includes conditions to ensure a clean transfer, licensing support, and employee hiring assistance.)

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