On 22 June 2012, the Competition Commission published its issues statement as part of its market investigation into the private healthcare market. It sets out its proposed approach to market definition and how it intends to analyse competition in the relevant market. In particular, the Competition Commission has identified the following seven theories of harm, to present its early thinking on how these issues stand independently and how they might fit together, to help frame its investigation: (1) market power of hospital operators in certain local areas; (2) market power of individual consultants and/or consultant groups in certain local areas; (3) market power of hospital operators during national negotiations with insurers; (4) buyer power of insurers over individuals consultants; (5) barriers to entry at different levels; (6) limited information availability; and (7) vertical effects, e.g. BUPA operates as both an insurer and as the owner of London’s Cromwell hospital. The Competition Commission will be looking to identify any detrimental effects on patients such as higher prices; privately-funded healthcare services being less suited to patients’ needs; reduced service quality; reduced choices; and reduced innovation. The Competition Commission has provisionally concluded that there is an adverse effect on competition in this sector and will consider customer benefits when considering remedies. The Competition Commission is inviting evidence by 20 July 2012. Read more.