On 2nd April 2014, the Competition and Markets Authority (CMA) produced a report that identified some players in the private healthcare sector were engaging in behaviour that had an adverse effect of competition.
HCA Healthcare UK is one of the private hospitals that was investigated.
In this report, the CMA found that some consultants and healthcare service providers didn’t always publicise their performance or fees for clients. By doing this, clients were potentially prevented from being able to effectively ‘shop around’ by comparing public and private services and costs associated with the latter.
The CMA’s decision
This behaviour reportedly adversely affected competition in respect of the quality of services available, and price. As such, the CMA instructed that private hospitals and healthcare consultants need to produce a range of fee information and treatment information that’s readily available for prospective patients to review for their choice of healthcare.
Appeal against the decision
The Federation of Independent practitioner Organisations (FIPO) appealed this decision to the Competition Appeal Tribunal (CAT) who then ordered the CMA to let HCA Healthcare advisors into their data analysis rooms to check the figures. The HCA Healthcare advisors found some errors that would have influenced the earlier report made by CMA that identified adverse effects to competition.
The CMA accepted this error and therefore agreed to have that section of the report quashed and referred back for reconsideration. The CAT agreed with the CMA’s decision to remit.
New published order
The CMA has published another Order listing steps to be taken to reduce the potential adverse effects on competition, as provided by the government website:
- A power to review arrangements for a private hospital to operate a private patient unit in an NHS hospital in its local area
- Provision of better information for patients on the performance of consultants and hospitals
- A crackdown on benefits and incentive schemes provided to referring clinicians by private hospital operators
The attractions of private healthcare
Here in the U.K., we have a readily available public and nationalised health system, but they make regular appearances in the news for cuts, overworked / underpaid staff, lack of beds, and other off-putting problems.
Next to this public service, private healthcare seems like a luxury; at a price.
For patients looking for a reliable and comfortable hospital experience, they may be inclined to invest a little money for upgraded healthcare. Private hospitals and clinics therefore need to charge a justifiable price for its premium services.
For a patient considering private healthcare, they need to know that the premium service they’re paying for is worth it.
The CMA’s investigations into HCA Healthcare UK scrutinised the organisation and other private healthcare providers for their lack of transparency over fees and services. Without this, patients may be unable to measure up whether it’s worth going private or not.
The CMA has decided to implement the order referenced above to hopefully ensure that patients get:
- To review the options they have in both the public and private healthcare sectors
- More information on the services that are available to them
- Access to appropriate benefits and incentive schemes provided by private healthcare providers
Whilst benefits and incentive schemes can sound like a great bonus to the consumer, companies need to be careful they don’t use tactics that can distort competition.