Private hospital in Macclesfield fined £1.2m for price-fixing scheme

By James Kelly

2nd Jul 2020 | Local News

A private healthcare group has been fined £1.2 million for a price-fixing scheme created by seven eye specialists working out of its Macclesfield hospital.

Spire Healthcare Group, one of the UK's biggest private healthcare providers, agreed to pay the fine after an investigation by the Competition and Markets Authority (CMA) into the illegal arrangement.

Seven consultants admitted that they agreed to fix fees for initial private consultations for self-pay patients at £200, with four of them increasing their fees from £180 for ophthalmology consultations.

This meant that patients who were paying for their own treatment could not find a better deal within the Regency Hospital on West Street.

The arrangement was found to have taken place from at least 29 August 2017 to 3 July 2019. In the case of one consultant, the arrangement was up to 28 June 2018, when they stopped consulting at the hospital.

It was first initiated following a dinner organised by the hospital's management and attended by 5 of the 7 ophthalmologists, during which the topic of fees was raised.

After the dinner, a Spire employee at the hospital sent an email to all seven consultants to suggest that the agreed price for initial consultations for self-pay patients be set at £200 going forward, which the consultants agreed to.

Spire then liaised with its customer service team to facilitate the arrangement.

The arrangement came to light after one of the consultants brought the illegal activity to the attention of the CMA and cooperated with the investigation. This consultant escaped receiving a fine.

Michael Grenfell, Executive Director of Enforcement at the CMA, said: "Initial consultations are an essential first step for people suffering from eye disorders.

"It is unacceptable that patients were unable to shop around and get the best deal because Spire and the consultants illegally set a minimum consultation fee."

He added: "It is particularly disappointing that the CMA has had to take action in the private ophthalmology sector again, following a previous finding of anti-competitive practices in the sector in 2015. Today's decision, and the subsequent fines, send a clear signal that we will not tolerate anti-competitive behaviour."

Cora McCallum, the head of investor relations at Spire Healthcare Group, said in response to the fine: "Spire Healthcare apologises for its conduct and fully co-operated with the CMA in its investigation, agreeing to accept the CMA's findings in full and settle the case with a fine of £1.2m.

"The CMA acknowledged the Group's strong compliance programme, which resulted in a reduction to the final fine. The individual consultants also agreed to settle with fines in the range of £642 to £3,859 each."

     

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