Health Insurance - PMI - HCA International buys Roodlane: industry ...

What does HCA International's acquisition of Rood Lane Medical Group mean for your clients?

The relationship between primary care and secondary care is a complex subject with important implications for employers’ claims funds. Madeleine Davies looks at who gets referred where, and why.

When HCA International announced in August that it had acquired Rood Lane Medical Group (Roodlane), the private primary care and occupational health group, questions were immediately raised about the implications for brokers' London clients. Inevitably, brokers began to speculate about whether the deal would result in an increase in the number of patients Roodlane referred to HCA International facilities.

Yet the deal is not the first of its kind and at least one insurer believes that, with over-capacity threatening private hospital groups' finances, it is "sensible" for them to take an interest in the businesses feeding them patients. Some brokers have welcomed the deal for heralding a new era of cost-efficient integrated care. If vertical integration is here to stay, what does this mean for corporate healthcare in London and the brokers operating in the field?

'Massive implications'

Magnus Kauders, commercial director of another private primary care and occupational health provider Blossoms Healthcare, believes the HCA International deal has "massive implications" for insurers and intermediaries.

"Vertical integration between primary and secondary care has always been viewed as a potential conflict of interest so it has been massively avoided in the UK, though it is common in the US," he says. "It’s good advice to separate advice about service from provision of service. Independence really is the key and knowing you are getting the best care and support. I’m not sure that the question over why a referral is being made hanging over the consultation is in the best interests of the insurer or the patient.


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