US medical insurance giant Centene is looking to sell its nearly 60 NHS GP practices, as part of a move to exit the UK health market.
The Financial Times reported this morning that Centene has launched a sale process for its GP subsidiary Operose, which could sell for around £51.2m, according to sources close to the process.
The company also announced on Monday that it has sold its network of 53 UK private hospitals – Circle Health – to a company in the Middle East for $1.2bn (£948m).
The company indicated that the move comes amid lacking profitability, reflecting the sentiment of Babylon Health, which is also looking to exit the market.
Centene took over privately-owned AT Medics, set up in 2004 by six NHS GPs and overseeing 37 London GP practices, in 2021.
Operose now serves over 640,000 UK patients in surgeries and digitally, making it the largest primary care organisation in the country.
The sale of Operose is expected to be made by Christmas this year, according to the FT.
The newspaper also reported Centene divesting both its GP and private hospital network in the UK indicates it has given up on plans to create an easy pathway to private healthcare by encouraging NHS GPs to refer patients to its Circle Health hospitals.
In its press statement Centene said its sale of Circle Health to PureHealth reflects the company’s ‘continued execution of its value creation efforts as the company refocuses its portfolio on core lines of business’.
Centene’s entry into UK general practice just under two years ago faced legal challenges by campaigners trying to tackle NHS privatisation, who argued that patients were not adequately consulted on the takeover.
However, a High Court judge dismissed the case last year, saying she did not accept that the North Central London CCG had given ‘insufficient notice to the public’.
At the time, the public donated £43,424 as part of the first fundraising campaign and raised an additional £34,283 to cover costs if the case was lost.
Tower Hamlets LMC chair Dr Jackie Applebee, one of the GPs who led the campaign, said this news ‘completely endorses’ their efforts.
‘We said, way back then, they wouldn’t be able to make a profit, and we said we were concerned that they’d sell when they realised this – and what would happen to all those patients then?’ she said.
Dr Applebee told Pulse she hopes ‘no ICB will ever consider selling off any general practice again to the private sector’ and the Government will ‘wake up, smell the coffee and just keep the NHS public’.
On the impact of this future sale on patients, she said: ‘I think patients will be feeling insecure. They’ll be wondering “will my general practice exist? If I’m feeling ill, will there be a GP for me to go to?”
‘They’ll be worried about their GP closing down. They’ll be worried about access to general practice. If you can’t get access to general practice, you can’t get access to healthcare at all, really.
‘So insecurity, uncertainty, lack of continuity. Continuity has been shown time and again to be good for outcomes. These patients are going to lose out on continuity. It’s really got to stop. It’s not fair on patients.’
Andrew Pow, board member of the Association of Independent Specialist Medical Accountants, told Pulse that if larger GP providers are struggling ‘it highlights the significant issues in resource and funding that providers currently have’.
‘All GP practices, whether corporate ones or GP-owned ones, need to have a secure workforce and make a profit. In GP-owned ones the profit is what pays partners to run practices,’ he said.
Mr Pow added: ‘The last two years have seen significant cost increases and these are not being matched with increases in funding with practices of all sizes under pressure.
‘Commissioners need to take notice of what is happening in the market place and address the need for funding increases to cover the additional costs practices now have.
‘Simply scaling delivery models will not result in efficiencies to cover these costs.’
The reports of Centene divesting its UK business follows on from news earlier this month that private healthcare company Babylon is seeking to sell off its UK operations amid financial troubles.
This could include its GP at Hand offering which currently serves around 100,000 NHS patients in London.
READERS' COMMENTS [16]
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My question is what are they selling? Not allowed the sale of goodwill. How much is a non profitable business worth? Cheaper to just set up a new practice than buy theirs surely. Pick your own staff not TUPE’d with no selection.
They will have a contract they need to get out of so can’t just pull out without “selling” it on to a willing provider.
They may have purchased premesis with a capital value to justify the “price”.
Buy them out of their financial position into an unprofitable business. Frankly what moron would do that. Let them fail. Govt problem. If you are mad enough you step in at that point with help to get their now devalued buildings and capitation fees for patents. This is how a successful businessman bunging cash to a political party would do it. Much cheaper to step in post failure and bankruptcy and start with clean sheet than buy a zombie business.
As a practice owner, it would be nice to see it worth huge amounts – but I suspect a collection of practices and contracts is worth far less than they hope.
Popcorn ready!
Can I buy them for minus 4 billion NZ dollars?
Demonstrates private companies lack the business skill or acumen to run NHS GP practices in my view ,contradicting the public perception that GPs can easily work for High Returns in the NHS rather than the long hours etc it really requires.
Combined with a failing NHS England (NHSE ) lacking management capability or skills and political parties also lacking in any in-depth understanding of Primary care as demonstrated by both Mr Barclay and Wes Streeting backed by the hundreds of millions currently being wasted by PCNs and Clinical directors on an ongoing basis , there seems little immediate hope for the NHS on the horizon.
13 years of Tory vandalism,even the private sector is failing.An extra 500 deaths a week continue in the UK.Sit back and watch the carnage continue and learn to say NO.
Hence the headline “Looking to Sell”……
for sale one used car may have some wheels, possibly tyres, windscreen slightly crazed, other windows available.
Lots of miles on clock indicating ability to deliver in past, less last few years, lots of not very careful owners,
Advertised price higher than you could imagine, selling price we’ll take whatever bung is forthcoming
May be GPs and doctors should realise their power now and go on strike with the Consultants.
I do feel these set ups were govt lackey stalking horses set up to destabilise the general practice partnership as it stands. They and NHSE will do anything not to give any money to GP’s as we might heaven forfend put some in our pockets as profit. They see us as a problem not at any stage a solution. We can’t be trusted to deliver services for a fee. Until like COVID jabs they find out that we do have expertise in such delivery and then they held their nose and paid with disdain. Despite cost per jab in primary care being cheaper than the other providers they used. So frankly I do hope these chancers lose their shirts and also that nobody steps in to help them. I want to see any primary care step in as ruthless asset stripping like you see in any other failed private business.
Babylon and now Centene….who’s next ?!
This is testimony to how frugal NHS services are delivered on a daily basis. If this sale was in the US you would add a few more zeros on the asking price.
Who’s working for a corporate? Does it pay better, better benefits?
Working for a corporate is akin to selling your soul to the devil. Discuss.
No doubt the government will step in and buy back , still leaving the company with profit at tax payers expense , just like the
bank bail out . Really all that needs to happen is for them to fail , go bankrupt then give GP’s their own contract again and any premises bought back on the cheap . Doubt the Conservative gov [ many with shares no doubt ] will let that happen .