Bupa is now to assess the value of private hospitals on an individual basis, refusing business to some in high capacity areas or with high pricing models.
“We have watched as the hospital groups buy up smaller hospitals and introduce all-in-one-in negotiating. These hospital groups are not at capacity and are not value. They are not asking how they can compete, enough is enough.”
Dr Natalie Jane Macdonald, managing director of Bupa Health and wellbeing added: “The private healthcare supply chain model has run its course. It lives in another world where it can carry on as it is on the back of our customers.”
Speak truth to power.
Good thing it was a doctor talking this way!
This is an important article for all investors and hospital executives because it clearly states what will happen time and again over the next five or so years. Insurance companies will hit hard at hospital pricing. And the insurance industry will do this more and more due to growing capacity of private hospitals.
We’ve noted this future several times in this publication, and I mentioned it recently in a speech I gave at a health insurance conference in Abu Dhabi. Hospital pricing pressure by insurance companies is not new. I also spoke about it at a hospital conference in Malaysia…..back in 2005.
We’re going to continue pounding this truism. It is good to be a health insurance company in many countries, and we especially like their position in parts of the MENA region……………HK