A review of the private healthcare sector by the Office of Fair Trading (OFT) has raised some issues that could lead to a referral to the Competition Commission.
The OFT highlighted three key issues in its review.
There was a lack of information that patients, healthcare providers and GPs could use to compare for both quality and cost. There was a limited number of significant healthcare providers and larger insurers at a national level. The features of the current private healthcare market make it difficult for new competitors to come in and as such it is seen to restrict choice.
John Fingleton from the OFT said: “It is important that patient demand and choice are able to drive competition and innovation in this market with a view to better value for all patients.”
Suppliers in the private healthcare market have welcomed the review and have until 30th January next year to respond to the OFT.
A spokesperson from Nuffield Health suggested that the report calls into question some agreements between providers and insurers and called for a more transparent and upfront system of pricing insurance policies.
A spokesperson from Bupa pointed out that many patients are not aware of the full costs of their treatments and any additional costs they may have to pay over their insurance premiums.
Often a consultant charges more than the limit set in an insurance policy, causing problems for customers.
Next year, the OFT will undergo further consultation before deciding whether to refer the sector to the Competition Commission.
