PMI – the integrated model
You might think that private medical insurers would be good at controlling the cost of medical treatment. Nothing could be further from the truth, according to an industry insider.
“Until a year to two ago they paid almost no attention to what they were billed for medical treatment,” he told us. The point of PMI (private medical insurance) is to give pampered ex-pats access to the most expensive brand name hospitals. Bills are paid with a shrug of the shoulder.
Other models are beginning to emerge. Bupa has owned its own Spanish hospital chain, Sanitas, for a decade, which only treats Bupa-insured patients. In this case, vertical integration is paying off. Sales at Sanitas increased by 10% in the first half of 2012 – an extraordinary figure for a country in the midst of a steep recession. We hear Bupa wants to export the model to other countries, and is keenly interested in buying Lux-Med’s clinic chain in Poland for that very reason.
Other PMIs are beginning to up their game, but not much. Our expert told us: “They are starting to offer free taxi services, which enable them to take patients an extra mile or two to a less-fashionable hospital which has lower prices.” Gosh, how innovative.
We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.
