Office of Fair Trading Rule in Circle's Favour
08 December 2011
Circle welcomes the OFT's decision to refer the
private healthcare market to the Competition Commission following
its market study.
The OFT's market study was initiated in response
to a formal complaint from Circle on the anti-competitive nature of
the private healthcare market in September 2010. The
complaint was based on alleged anti-competitive agreements between
national private healthcare providers and private medical insurance
providers.
Circle argued that these agreements - known in
the industry as network agreements - act as a barrier to new
entrants and result in consumer harm through restricted
choice. The OFT responded to Circle's complaint by launching
a market study into private healthcare in December 2010, which
concludes with today's report.
In their report, the OFT accepted the arguments on the high
barriers to entry in private healthcare and the consumer harm
resulting from networks.
Commenting, Circle CEO, Ali Parsa, said:
'Circle has fought since our inception for a freer and fairer
healthcare system. We welcome today's decision which we
believe will lead to the unleashing of entrepreneurialism and the
unlocking of innovation at a time when our country needs it
most.'
'This calls time on the anti-competitive games that for years
have stifled innovation, shackled clinicians and shut down
choice.'