Rougher Seas Ahead PMI Providers Are Battening Down the Hatches in Preparation for Hurricane IPT
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Before the storm A unified voice Believe in unicorns The latest research from LaingBuisson shows PMI Bupa Insurance CEO Alex Perry talks to Is it time for investors to take a was flat in 2016 but dark clouds are on the horizon HM about the response to rising IPT serious look at AI start-ups? October 2017 | Volume 21 | Issue 8 HealthcareMarkets Independent. Intelligent. Insightful. In focus Rougher seas ahead PMI providers are battening down the hatches in preparation for hurricane IPT Xxxxx xxx xx xxxxxxx TRANSFORM CARE IMPLEMENTING NEW MODELS TO IMPROVE CARE AND VALUE To build sustainable solutions that are patient/ customer focused, health and social care systems need to optimise outcomes and experience, while delivering on value. We help clients transform care through the development and implementation of innovative, proactive, patient-centred models that address gaps and inefficiencies in our current delivery system. www.oliverwyman.com/transform-care Introduction As further evidence emerges of a buoyant self-pay market (News p7 and p9), we turn our focus to PMI. LaingBuisson research suggests turbulent times are ahead for the medical insurance market (Infocus p20) while Bupa Insurance CEO Alex Perry talks to HM about why the sector should meet the negative headwinds with a unified voice (Inconversation p16). Meanwhile, we look at how some insurers are responding to the rise in mental illness (Infocus p22) and what the future holds for patient choice (Infocus p24). And for something completely different, Dr Michelle Tempest and Dr Sam Winward from Candesic examine the future of AI in healthcare (Indepth p26). IT CAN TAKE TIME FOR THE ADDITIONAL TAX BURDEN ON POLICIES TO AFFECT THE BEHAVIOUR OF CUSTOMERS, AND AN ACCUMULATED IMPACT DOWN THE LINE MAY WELL BE COMING Philip Blackburn, p20 Weathering the storm Just when insurers were claiming some success in containing price rises, the IPT hike and Brexit look set to place PMI in the eye of the storm laingbuissonnews.com | OCTOBER 2017 | 3 Contents Independent. Intelligent. Insightful PMI demand flat in 2016, according Can PMI providers offer genuine cover to LaingBuisson research, p20 for mental health conditions? p22 12 “We fear that the impact Regulars Inpartnership of government policy is NHSPN chief executive David Hare distorting the market." 6 looks at the winter ahead News Alex Perry CMA gets tough on compliance 14 NHS Professionals sale Insider withdrawn AIHO chief executive Fiona Booth Consumer choice drives self-pay talks about its work on patient 33 Nuffield and VitalityHealthform JV choice Inbusiness Self-pay continues to boom Ramsay and Spire feel tariff impact Access to NHS care worst in the 30 south Inlaw 46 GenesisCare rolls out new Trowers & Hamlins explores the In post radiotherapy technology opportunities in healthcare real Spire and Ramsay announce CEOs estate This month… The evidence of a boom in self-pay is compelling. The latest financial results from private hospital groups are pointing to strong COMMUNITY double-digit growth and recent research into both consumer and Follow us provider behaviour suggests demand will only increase as patients @HealthcareLB become more savvy and the NHS comes under greater strain. Join LaingBuisson’s Outside of central London, however, self-pay still accounts for a linkedin grouplinkedin. relatively small proportion of private hospital activity. Most providers com/company/ Editor, Maria remain heavily reliant on a mix of PMI and NHS activity and both LaingBuisson Davies looks at of these markets are entering a period of increased uncertainty as Visit HM’s blog this month’s key Brexit, medical inflation, rising taxes and continued austerity - not to laingbuissonnews.com issues mention a fragile political landscape - conspire to create the perfect storm. Self-pay is unlikely to overtake either of these markets any time soon, but its recent resurgence does offer another glimmer of hope for private hospital providers - patients want choice. And that will continue to apply regardless of whether their treatment is funded through PMI, taxation or out of their own pockets. 4 | OCTOBER 2017 | HM - LaingBuisson HM Healthcare Markets OCTOBER 2017 Vol. 21 Iss. 8 CONTACT US Is it time for investors to [email protected] take a serious look at the laingbuissonnews.com new breed of ‘unicorns’ working in healthcare AI? p26 Bupa’s Alex Perry talks about unity in EDITOR the face of a common enemy, p16 Maria Davies [email protected] +44 (0)20 7923 5390 PUBLIC POLICY REPORTER Ann McGauran Features RESEARCH AND DATA [email protected] +44 (0)20 7923 5395 16 24 Inconversation Infocus PUBLISHING DIRECTOR Bupa Insurance CEO Alex Perry Choice information [email protected] talks to Maria Davies about IPT Awareness of patient choice still SUBSCRIPTION SERVICES and fighting for a better deal for hovers at 50% so is now the time Janet Brown patients to start educating GPs? Ann [email protected] McGauran reports DISPLAY ADVERTISING 20 [email protected] Infocus 26 +44 (0)20 7841 0045 Before the storm Indepth LaingBuisson’s latest research Believe in unicorns shows that PMI was flat in 2016, AI in health is going mainstream, but Brexit and the rise in IPT say Candesic’s Dr Michelle could cast it into choppy waters Tempest and Dr Sam Winward Events SUBSCRIBE NOW Annual subscription (10 issues) JOIN US! Visit laingbuissonevents.com to find details of forthcoming Print & Online £499 Print, Online & Digital £749 LaingBuisson health and care conferences, seminars and report launches +44 (0)20 7923 5390 Chosen provider of independent sector HM Conference HM Awards healthcare market data to the ONS The voice of Private Acute Healthcare 2017 LaingBuisson Awards 2017 professional publishers Thursday 12th October Wednesday 15th November Royal Society of Medicine Park Plaza ISSN 2399-7044 HM is published ten times a year by LaingBuisson Ltd, 29 London London Angel Gate, City Road, EC1V 2PT. +44 (0)20 7923 5390 Printed by Rapidity, Citybridge House, 235-245 Goswell Road, London, EC1V 7JD ©LaingBuisson Limited 2017. No responsibility can be taken by the publisher or contributors for action taken as a result of information provided in this publication. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by REGISTER NOW 020 7841 0045 [email protected] laingbuissonevents.com the Copyright Licensing Agency Ltd and in the USA by the Copyright Clearance Center Inc. laingbuissonnews.com | OCTOBER 2017 | 5 News CMA warns NHS trusts over failure to submit data to PHIN he CMA has warned seven NHS which means the data on its website now trusts they will face court action covers 149 procedures at 286 hospitals. if they fail to submit data to the However, it said that while this represent- Private Healthcare Information ed a significant step forward, full compli- TNetwork (PHIN) by the end of this month. ance was needed to increase transparen- The competition watchdog said it had cy in the sector. directed the trusts to submit data on the Chief executive Matt James said: ‘PHIN quality of their private services to the continues to make progress, publishing in- sector’s information body after they failed formation about a wider range of hospitals to meet previous deadlines. The hospitals as they come on board. We’re pleased to concerned are: Kettering General Hospital see the CMA taking positive action to en- NHS Foundation Trust, Royal Devon and sure that all private healthcare providers Exeter NHS Foundation Trust, Western participate, and send us the complete Health and Social Care Trust, Northern and accurate data that will enable us to Health and Social Care Trust, Taunton and publish more detailed measures, including Somerset NHS Foundation Trust, Salford information about consultants. PHIN re- Royal NHS Foundation Trust, and Sandwell mains focused on assisting all hospitals to PHIN CEO Matt James says the organisation and Birmingham Hospitals NHS Trust. fully participate, providing tools and sup- continues to make progress Adam Land, senior director of reme- port to enable them to submit and check dies at the CMA, said: ‘Although progress their data prior to publication. We contin- is being made, certain hospitals have ue to balance an absolute commitment to private healthcare to do what other in- failed to submit any information to PHIN making the CMA’s information remedies dustry sectors have been doing for years for publication. The CMA is now start- work for patients with a pragmatic view on which is to quantifiably measure success, ing formal proceedings against those what is deliverable.’ identify and improve poor care, and allow hospitals which have made least progress PHIN chairman Andrew Vallance-Owen good care to stand out. Ultimately this is towards compliance. We will take further added: ‘Lessons from the last year have about empowering patients with informa- action against any hospital that is not fully shown an absolute and urgent need for tion that will help them understand and compliant.’ greater transparency in private healthcare choose the best care for them or their PHIN published performance measures in the UK. PHIN wholeheartedly supports families.’ for an additional 26 hospitals last month, the action taken by the CMA, it’s time for Ministers axe plans to sell off NHS Professionals Controversial plans to sell NHS consideration, the government has According to government Professionals (NHSPN) have been concluded that none of the offers ministers, NHS Professionals’ shelved by ministers after it failed received for the company through financial performance has improved to attract a sufficiently high offer the open, rigorous bidding process significantly over the past year, with from bidders.