CMA dispenses final remedies for private healthcare market

The announcement by the Competition and Markets Authority (formerly the Competition Commission [CC]) is the culmination of a two-year investigation into the private healthcare market. Provisional findings were published in August 2013 and the CC published its provisional decision on the remedies it proposed in January 2014.

The final report implements all the remedies that were proposed in January, with one key exception. The CC had proposed that the Healthcare Communications Association (HCA) would have to sell two of its six London hospitals and BMI would have to sell seven of its hospitals across England. The final report found that while it was clear that HCA’s market power in central London allows it to charge higher prices to insurers, outside central London the effect of weak competition on prices charged nationally to insurers is less clear. Therefore, the CMA has dropped the requirement on BMI to sell its hospitals…

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