Spire admits to price fixing scandal in £1.2m fine
Spire Healthcare has admitted to its part in an illegal price fixing scandal that saw one of its hospitals overcharge patients with eye disorders.
The Competition and Markets Authority (CMA) ordered the firm to pay £1.2m in fines following the conclusion of its investigation.
One of Spire’s hospitals instigated and facilitated an illegal arrangement with seven consultant ophthalmologists, the inquiry found. They have all admitted that they agreed to fix fees for initial private consultations for self-pay patients at £200.
The agreement was made following a dinner organised by the hospital, at which a Spire employee convinced some of the ophthalmologists to raise their prices from £180 to £200.
A whistleblower from the group informed the CMA, which led to an investigation being opened. The consultants received fines of between £642 and £3,859 and were allowed to remain anonymous, while the whistleblower was not fined.
“Private consultants set their own prices for initial consultations for self-pay patients, but by agreeing not to compete with each other on price, the Spire hospital and the consultants in this case denied potential patients the chance to choose between the consultants to get the best deal,” the watchdog said.
Ophthalmologists treat eye disorders such as cataracts and glaucoma. The arrangement, based at a Spire hospital in Macclesfield, lasted for almost two years.
Spire said it had not made a profit from the deal, as those fees are paid directly to the consultants.
The CMA was last forced to intervene in the private ophthalmology sector in 2015, after a membership organisation of consultants were fined £382,500 for similar behaviour.
“Initial consultations are an essential first step for people suffering from eye disorders. It is unacceptable that patients were unable to shop around and get the best deal because Spire and the consultants illegally set a minimum consultation fee,” said CMA executive director of enforcement Michael Grenfell.
“It is particularly disappointing that the CMA has had to take action in the private ophthalmology sector again, following a previous finding of anti-competitive practices in the sector in 2015. Today’s decision, and the subsequent fines, send a clear signal that we will not tolerate anti-competitive behaviour.”