New regulations from the Competition and Markets Authority

A new Order from the Competition and Markets Authority (CMA) came into force on 6 April 2015 following an investigation into the independent healthcare market. 

The investigation found widespread use of incentive schemes to encourage doctors to treat or refer their patients for tests in independent and private healthcare facilities.

The Order prohibits organisations that operate independent and private healthcare facilities, including private patient units within NHS organisations, from “offering any direct incentive to, or creating an obligation on, a referring clinician to give preference to the facilities of that private hospital operator when treating private patients or referring private patients for treatment or tests”. It also prohibits doctors from requesting, agreeing to receive, or accepting such incentives.

The CMA also found that some patients did not receive clear and timely information about fees. GMC guidance on Financial and commercial arrangements and conflicts of interest says doctors must be honest and open in any financial arrangements with patients, and doctors who charge fees must tell patients about their fees, if possible before seeking their consent to treatment.

The regulations state that any scheme which gives doctors a financial incentive that could affect their clinical judgment or referral recommendations is unacceptable. It says wherever possible, doctors should avoid conflicts of interest but where there is a conflict, it should be declared to anyone affected, formally and as early as possible. If in doubt about whether there is a conflict of interest, the advice is to act as though there is.

The GMC also have a requirement for all hospitals to inform them of any incentive schemes that raise questions about compliance with the guidance.

If you think the Order could affect your practice, please consult the full version and additional briefing on the GMC website.