CMA Letter to The Hospital of St John and St Elizabeth regarding a breach of the Private Healthcare Order
Letter to The Hospital of St John and St Elizabeth about a breach of Part 3 of the Private Healthcare Market Investigation Order 2014.
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Part 3 of the Order requires a private hospital operator, such as The Hospital of St John and St Elizabeth, to not offer or provide referring clinicians with incentives that may encourage them to refer or treat a patient at that site. The Hospital failed to offer higher value services, including office rental space, medical secretarial services and consultant room hire, on non-discriminatory terms or at fair market value. This was a clear breach that meant patients could not make fully informed choices.
This requirement is in place to address one of the areas of concern identified in the Competition and Market Authority’s (CMA’s) Market Investigation. The CMA found that private hospitals could incentivise consultants to refer patients to that hospital through benefits or discounted services. This means that clinicians and hospitals were not acting in a transparent way.
The Hospital voluntarily informed the CMA of the breach in February 2024. However, the Hospital remains in breach of the Order. Therefore, the CMA has requested they publish an action plan detailing how they will become compliant by 1 January 2025. The action plan is in an annex of the letter.