Lack of competition drives down European and US profits 22%
Private healthcare provider Bupa blamed a 5% drop in UK health insurance customers during the first half of 2012 on economic uncertainty and weak consumer confidence.
The UK’s leading health insurer said that its customer base fell to 2.7m for the period - in line with a market that has been in decline since the financial crisis four years ago.
Bupa said a lack of competition among UK private hospitals had also contributed to a 22% fall in profits in its European and US businesses.
The health insurer posted a £35m profit for its UK, Spanish and US operations, down from £45m last year, citing a lack of competition which was pushing up the cost of treatment and threatening to make its health insurance unaffordable, forcing customers away.
However the Group’s overall profits before tax were up 5% at £255.3m (£244.1m) for the six months to 30 June and revenue also climbed 5% to £4.1bn (£3.9bn).
Bupa chief executive Stuart Fletcher, who took over in March, said: “There are some consultants charging a good deal more than others, but who display no better quality of health outcomes for the customer.”
Fletcher warned that the cost of treatment in the UK was now double that of Spain and 80% higher than in Australia.
“There’s an affordability issue because the number of people taking up health insurance is declining,” he said.
“The NHS provides a great service and we partner with them but for those people that want access to private treatment because they want the choice of when or where they are treated, this is an issue.”
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