How your private doctor is gaining at your expense

The Competition Commission has begun an inquiry into private health insurance market in Britain amid concerns that bribes paid to consultants not only pushing up the cost three times faster than inflation, but leads to unnecessary treatments.

The Office of Fair Trading (OFT) referred the £ 5 billion private medical market to the commission after discovering financial kickbacks and bribes were commonplace. Such incentives are banned in many countries including the United States.

There are problems created by private hospitals compete fiercely for patients. They benefit from half of the income from private treatment, while consultants pocket the other half. Consultants to convince their patients bring to them is the key. So the hospitals compete not on the service to patients, but consultants for incentive packages - packages that are paid by the patient and their insurers.

This can range from free advice chambers or administrative support, to the payment of bonuses depending on a target volume of surgeries being met, or tests with a particular device. But the OFT believes annual bonuses are also paid based on numbers of patients or income of an adviser helps the generation of a hospital group. Also found evidence of loyalty payments, consultants are rewarded for treating a greater proportion of their patients on a specific facility.

Needless to say, health insurers, who pay for almost 80pc of non-NHS-funded private treatment, are very unhappy about this development, claims not only driving up the costs for their insured, but leads to potential risks to their health over exploration and unnecessary treatments.


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