Competition and Markets Authority finds a lack of price competition in private healthcare in central London is “harming customers”
A lack of price competition in private healthcare in central London is “harming customers”, the Competition and Markets Authority has provisionally found after an appeal by HCA International Limited.
The CMA has found that the market share of HCA International, together with high barriers to entry and expansion in central London have resulted in weak competitive constraints that have led “HCA International charging higher prices to private medical insurers than would be expected in a well-functioning market”.
The watchdog looked into HCA International after the company appealed a report published in April 2014, which found certain features of the market for privately-funded healthcare were having an adverse effect on competition.
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Following the April 2014 report The CMA “required HCA International, the largest private healthcare operator in central London, to sell one or two of its hospitals”.
The CMA now says it will consult on possible remedies to address its concerns, including considering the divestment of one or more hospitals, allowing competitors access to one or more of its hospitals or preventing further expansion by HCA International in central London.
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A HCA International spokesman said: “We note the new and alternative remedies in the CMA’s provisional findings. Since this process began, over three years ago, London’s private healthcare market has continued to grow and diversify. Recent investments by the Cleveland Clinic and VPS in large new facilities, and Spire’s plans for a new central London hospital by 2018, are yet further signs that London offers an open, accessible and competitive market.”
A final report will be published in March, after the CMA consults on its provisional findings.