Washington, DC, January 30, 2026 — The US Federal Trade Commission has cleared with conditions Sevita Health’s proposed $835 million acquisition of BrightSpring Health Services’ community living business, requiring the divestiture of more than 100 healthcare facilities to address concerns over reduced competition in services for individuals with intellectual and developmental disabilities (IDD).
Under a proposed consent order, Sevita must divest 128 intermediate care facilities (ICFs) and related assets, including day-training programs, in Indiana, Louisiana, and Texas. The assets will be acquired by Dungarvin Group, an experienced operator of ICFs, in an effort to preserve competition and protect care quality in affected markets.
Sevita, a subsidiary of Centerbridge Seaport Acquisition Fund, seeks to acquire ResCare Community Living, BrightSpring’s IDD services unit. The FTC said the transaction would have combined the two largest national providers of residential IDD services, raising concerns that the loss of rivalry could harm service quality and limit choices for families and caregivers.
According to the FTC’s complaint, competition between Sevita and BrightSpring has been a key driver of investment in staffing, training, safety standards, and individualized care. The agency warned that the merger, as originally proposed, could weaken incentives to maintain or improve care quality while narrowing options for families seeking appropriate facilities for vulnerable individuals.
In addition to the divestitures, the proposed order requires Sevita to assist Dungarvin in securing all necessary licenses and regulatory approvals to operate the divested facilities. Sevita must also cooperate for one year after the divestiture to allow Dungarvin to evaluate and offer employment to affected staff.
The consent order further includes a 10-year prior notice obligation, preventing Sevita from acquiring additional ICF or IDD service facilities within the same local markets in the three states without advance approval from the FTC.
The Commission voted 2–0 to issue the administrative complaint and accept the proposed consent agreement for public comment. The agreement will be open for a 30-day public consultation period, after which the FTC may finalize the order if it determines the settlement serves the public interest.
If approved, the consent order will carry the force of law and govern Sevita’s future conduct in the affected healthcare markets.
