Private healthcare market competition investigation
First published by Author on December 07, 2022 in the following categories: Consumer Law Healthcare Industry Investigations Latest Pricing and tagged with cma | competition law | consumer law | healthcare | investigations | pricing
The private healthcare market investigation that has been ongoing for over a decade is a matter that has seen a recent update published by the UK’s CMA, the Competition and Markets Authority.
Private healthcare is a particularly sensitive industry in relation to competition law, and it is one that must be monitored carefully to make sure that patients – i.e. consumers – can make the best choices for them. In this latest update from the CMA, it has been suggested that there is still much more work that needs to be done.
About the private healthcare market investigation
The private healthcare market investigation is a matter that the Competition and Markets Authority has been involved with for over a decade. It stems from a matter that was originally with the OFT and the Competition Commission, in relation to looking at restrictions and distortions of competition in this market.
There was a consultation period over a decade ago that closed at the end of January 2012. At the time, the OFT reportedly considered that there were issues in respect of the prevention, restriction and distortion of competition in the market.
For several years, regulators have been involved in gathering information and holding consultations with relevant parties. You can see on the CMA website just how in-depth the private healthcare market investigation is, given how long it has been going on for.
Latest in the CMA’s investigation
In the latest development in the private healthcare market investigation, the CMA has published an open letter to private healthcare consultants and hospitals. The CMA has outlined that hospitals and consultants could face enforcement action if they do not provide necessary information to prospective patients.
It was outlined that the CMA considered that some private healthcare providers had not been clear and consistent enough to allow consumers to make an informed decision about who they have treatment with. Private healthcare information must be submitted and available online to allow prospective patients to better compare providers, and see important factors, such as pricing, satisfaction and success rates. Although this is a stipulation that has been in place for several years, the CMA has said that some providers have not been supplying the requisite information. The upshot of this means that some patients may still be unable to make full comparisons to help them to choose a provider accordingly.
According to the CMA publication on the matter, David Stewart (Executive Director of Markets and Mergers) said:
“Prospective patients need this information to make important and, at times, difficult choices about their private healthcare – and currently, they don’t have the full picture.
We know this isn’t an easy task for hospitals and consultants. However, hundreds of hospitals and thousands of consultants have already supplied the right information to PHIN. We thank them for working hard to meet this requirement.
There are still some providers that have failed to make any progress, or even attempt it. If they now show a commitment to making the changes needed, we will support them to achieve this, alongside PHIN. However, those that continue to fail to (SIC) can expect to face enforcement action.”
Source: CMA.
The importance of watching competition in the healthcare industry
It can be an incredibly difficult decision to engage in private healthcare, so it is essential that patients (consumers) are afforded the ability to make a proper and informed choice. This can only happen if consumers have all the necessary information available, so it is important that the CMA continues its work in making sure that providers are transparent to allow consumers to make the best decisions for them.
This may become even more prevalent at a time when NHS resources continue to be incredibly stretched. Whilst my view is clear in that the NHS should be protected first and foremost, and we should focus on public healthcare, if people are wishing to go private, competition needs to be carefully monitored to avoid people suffering.