Aviva Health and VitalityHealth have formed the Healthcare Purchasing Alliance, a joint venture which will enable the insurers to wield their collective buying power when procuring services from private and independent hospitals.
Two of the UK’s leading private health insurers have joined forces to launch a new initiative designed to help deliver greater value to their customers.
Aviva Health and VitalityHealth have formed the Healthcare Purchasing Alliance, a joint venture which will enable the insurers to wield their collective buying power when procuring services from private and independent hospitals. They will, though, continue to trade independently and under their existing brands within the individual and company health insurance retail markets, using HPA only as a vehicle for buying treatments and services offered under their policies.
“This new venture will improve the value Aviva customers receive from their private health cover. This is a significant opportunity to grow the Aviva Health business and health insurance market overall by offering affordable health insurance.” explained Aviva Health’s managing director, Mark Noble.
Neville Koopowitz, CEO of VitalityHealth added that the joint venture would also promote market innovation, saying: “”We are pleased to be partnering with Aviva on such a great initiative. By working strategically with the hospital groups, HPA will further strengthen our ability to innovate in the products and services that we offer our members. This is particularly important in light of the consolidation taking place within the private medical insurance funding market.”
The move is part of a wider trend which is seeing all the leading private health insurers examining how they might better manage healthcare costs in order to minimise premiums. This has been most evident in the adoption of the “open referral” model firstly by BUPA and then AXA PPP Healthcare. Under this model the insurer sets pre-agreed maximum fees which hospitals and consultants registered under open referral may charge.
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