Well, I’m feeling very prescient today. After yesterday’s post looking at Dutch regulation of competition on healthcare, I get an email about the UK competition authorities looking at private healthcare in the UK.
You can get the alert from a law firm on this topic here: http://www.kslaw.com/imageserver/KSPublic/library/publication/ca040512.pdf#page=1
The Office for Fair Trading has referred the private healthcare industry to the Competition Commission for investigation, and there is a consultation – you have about a month to reply.
The report starts:
The private healthcare market was valued at £5 billion in 2009 and is expected to grow in line with an ageing UK population and a consequent growth in the demand for healthcare provision.
And, you might add, because the government seems intent on having more private provision as part of the NHS. One of the ways of testing that intention out, as I said yesterday, is by using competition regulation to check that they are doing business in ways that benefit the public, not their own financial interests.
So what are the OFT’s concerns?
First, existing biggies in the market make it difficult for new providers to start up. So all those charities and social enterprises hoping to play a part in their local markets are likely to be kiboshed by the big providers making it tough for them.
Second there is no comparable information for patients and their GPs about how good or economic they are. We’ve spent years trying to get the NHS to ante up information about the efficiency and quality of our local hospitals, now it seems we’ll have to start all over again getting the private providers to disgorge information about how well they’re doing.
Third, there are only a few significant players in the market and the few national providers (the BUPAs etc.) might have too much power in the market because there is very little realistic choice. The reason is the same as the Dutch problem I looked at yesterday: most patients want local provision; if there is no choice in local provision, there is no choice.
Also there is the problem of ’shortfall’ payments. This is where your friendly profit-making consultant doctor wants to do things that the insurer won’t pay for, so they zap you with a bill afterwards for the extras. But they don’t tell you in advance. If you have a plumber, they have to give you an estimate and stick by it. Not private sector doctors apparently.
These are some of the OFT’s recommendations:
A commitment by private healthcare providers to publish clear, accessible and comparable quality information.
The development of a ‘choice-tool’ for private patients by which self-pay prices could be better compared between rival facilities.
A recommendation to NHS Trusts or the Department of Health that certain partnership arrangements should not be undertaken with a private healthcare provider that has more than a certain share of the local market, or be subject to establishing certain conditions of access.
A ban on agreements between private healthcare providers and private medical insurers that concern the recognition of new, rival facilities.
All eminently reasonable – so much so, you wonder how they’ve been allowed to get away with it. People who are concerned with how the NHS may be affected by how the private sector operates need to look at competition regulation very carefully. Since very few people used private providers in the past, nobody bothered too much about how they operated. In future, we must all take a much closer look at this, and turn up the heat to make sure these people behave properly for the benefit of patients.