Investment scheme scare for doctors
Investment scheme scare for doctors
BMA urges caution to anyone looking at workplace JV plans
Doctors who consider entering joint-venture investment schemes in private healthcare must exercise caution the BMA has warned, following cases where individuals were left thousands of pounds out of pocket.
BMA council deputy chair Emma Runswick has urged doctors working in self-pay patient and private medical insurance settings to seek independent legal and financial advice before committing to joint venture investment schemes with organisations.
The warning comes following reports to the association of doctors incurring financial losses after investing into JVs with private provider HCA Healthcare UK.
Joint ventures are shared business agreements between private medical providers and doctors typically used to establish and deliver medical services and treatment centres.
Doctors participating in JVs hold ‘practising privileges’ conferred by the provider, which allow them to practise under defined clinical and governance conditions.
Financial risks
Although these schemes vary, private firms are the primary financial beneficiaries while doctors hold a minority financial interest in the partnership business in addition to their fees earned from private patients.
In a letter sent on 29 September to more than 9,000 BMA members who care for self-pay and private medical insurance patients, Dr Runswick said the association’s private practice committee remained ‘concerned’ about the potential financial risks posed by joint ventures.
She said: ‘Over the past four years, the committee has been contacted by several members regarding joint-venture investment arrangements with HCA Healthcare UK.
‘Members have reported suffering substantial financial losses following the withdrawal of practising privileges. In some cases, the sums invested have been significant.
‘The PPC does not question the responsibility of hospitals to respond appropriately to legitimate clinical or governance concerns and, where necessary, to withdraw practising privileges. Its concern is that the loss of practising privileges may also have significant financial consequences for a doctor in their separate capacity as an investor in a joint venture.
‘The PPC is concerned that doctors considering such arrangements may not fully appreciate the potentially significant financial consequences that can arise. It therefore considers it particularly important that doctors obtain robust, independent legal advice before investing and ensure that they fully understand the circumstances in which their investment may be affected.’
She added: ‘Doctors across all four nations are strongly advised to exercise caution when considering joint-venture arrangements with HCA Healthcare UK and to seek robust, independent legal advice before entering into any such agreements.’
HCA were approached for comment.
• For more information or advice regarding joint ventures, please contact Reena Zapata, PPC Lead, at info.privatepractice@bma.org.uk
