Leeds Hospital Fund (LHF) has merged with HSA the industry's largest cash plan provider. The new com...
Leeds Hospital Fund (LHF) has merged with HSA the industry's largest cash plan provider. The new combined operation has boosted LHF/HSA's market share to over 45%, with a customer base of over one million and covering more than three million.
As the Treasury has announced that general insurance, including cash plans, will come under Financial Services Authority (FSA) regulation in 2004 this is likely to be only one of a spate of mergers and acquisitions over the next few years.
There is a critical mass needed by cash plan providers in order for them to function efficiently under a regulated regime and a sizeable proportion of the sector's market comprises small not-for-profit operations who will struggle with compliance matters.
Both companies will function as separate organisations, with LHF being particularly strong in the North of England. Terry Hardy, the LHF chairman has become a non-executive director of HSA and the LHF board will now include three HSA directors.
Des Benjamin, chief executive of HSA, said: 'Both LHF and HSA have very similar cultures and I am convinced that jointly we will bring something very special to the healthcare sector. In particular, we see the future of healthcare cash plans as very bright. Being commercially astute but not commercially inspired we really are there for our customers.'
l For an overview of the cash plan industry see this month's cash plan survey and feature on page 35.
