Aviva Health and VitalityHealth have formed a joint venture company for the procurement of hospital treatment on behalf of their private medical insurance (PMI) and healthcare trust customers.
The new joint venture, Healthcare Purchasing Alliance (HPA), will enable Aviva Health and VitalityHealth to purchase a variety of health services from UK private and independent hospitals.
The insurers said the "joint venture will enable the two insurers to secure more affordable healthcare for their customers through their combined purchasing efforts, while maintaining the quality and breadth of their individual offerings."
Tania Baker has been appointed Chief Executive Officer of HPA. She was previously CEO of Dr Foster, a provider of healthcare analytics.
Mark Noble, managing director of Aviva Health, said: "This new venture will improve thevalue 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."
Neville Koopowitz, CEO of VitalityHealth, said: "By working strategically with the hospital groups, HPA willfurther 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."
Brian Walters, principal of Regency Health said: "This is a positive development that should be good for consumers and for the market more broadly.
"It's commendable that Vitality and Aviva are able to collaborate on this venture whilst maintaining differentiation in the marketplace."