Competitive Healthcare?

On 8 December 2011, the Office of Fair Trading (OFT) issued its report on the private healthcare market study announcing its proposed decision to make a market investigation reference (MIR) to the Competition Commission. There is now a period of consultation up to 30 January 2012 before the reference decision can be made.

If it goes ahead with the MIR, the OFT will pave the way for a lengthy Competition Commission investigation which may result in a radical shake up of the sector. This will be a hard road to travel for the Private Healthcare (PH) companies, Private Medical Insurers (PMIs), consultants and other players identified by the OFT as collectively failing to deliver effective competition in the market.

All the main PH and PMI providers have been fully engaged in the OFT's market study and will be familiar with its findings. But its implications are wider, affecting plans for NHS Trusts expanding private patient units as regulatory restrictions are withdrawn, returns on investment in PH facilities and the whole way of thinking about healthcare markets in the UK. This work will have ramifications for the evolution of competition in the NHS being proposed under the Health and Social Care Bill.

Wragge & Co's healthcare experts consider the key points and implications and identifies some possible outcomes.