Divestment threat hangs over hospital groups

The Competition Commission’s preliminary findings into the private healthcare market found last month that the market is unfair with private hospitals wielding power over insurers and being able to force prices up. It also published a list of suggested remedies and, in a move that operators hope will not come to fruition, suggested than some operators may be forced to divest and sell-off some hospitals. A total of up to 20 hospitals outside London in 11 location clusters were highlighted by the Commission. The key issues that cause adverse effects on competition include: