BRITAIN’S competition watchdog has been drafted in to rule on a merger between two publicly funded hospitals.

The Competition and Market Authority (CMA) — more commonly called upon to rule on corporate takeovers — gave the green light yesterday to plans for Chelsea and Westminster Hospital Foundation Trust to swallow up debt-laden neighbour West Middlesex.

Anti-privatisation campaigners said the regulator’s involvement showed just how far the Tories’ NHS market reforms have gone since 2012’s privatising Health and Social Care Act.

Health Emergency director Dr John Lister warned that the service was being turned into a “giant business.”

The CMA said it could assure residents in north-west London that the takeover would not “lead to a material reduction in the quality of services for patients.”

Neither would the deal reduce “competition” between publicly funded hospitals in the area, it added approvingly.

Dr Lister said that the CMA had become involved because of ministers’ “wacky idea that competition is going to improve healthcare.”

In fact both trusts are struggling to balance the books and reporting losses because of market reforms, funding cuts and growing demand for A&E services, he said.

“The idea of hospitals in that area of west London competing — given closures at other hospitals in the area — is ludicrous.

“Both of these two trusts are already struggling.

“The merger seems to reflect the idea that one great big financially troubled trust is better than two separate ones.”