Review of Private Patient Unit (PPU) arrangements

We are inviting views on the CMA’s approach when reviewing Private Patient Unit (PPU) arrangements. That is, arrangements for a private hospital operator to operate, manage, or otherwise provide privately-funded healthcare services at a private patient unit in England, Wales, Northern Ireland, or Scotland.

As a result of its Private healthcare market investigation (2014) the CMA made the Private Healthcare Market Investigation Order 2014 which contains a market-opening remedy in the form of a scheme to enable the CMA to review PPU arrangements. The PPU scheme set out in the Order is intended to complement the merger control regime that applies to all market sectors. Thus, PPU arrangements which constitute ‘relevant merger situations’ under Part 3 of the Enterprise Act 2002 are subject to review under the merger control regime. However, where PPU arrangements do not constitute a relevant merger situation, Part 2 of the Order allows the CMA to review the impact on competition of those arrangements, having regard to the competitive constraints in the relevant local area and, if appropriate, take remedial action.

This guidance is concerned with those PPU arrangements which do not constitute relevant merger situations under the Act and fall within the scope of Part 2 of the Order.