Bupa has confirmed it is in preliminary discussions over the sale of its UK hospitals division, a move which is expected to generate around £1bn for the healthcare group.
Bupa says it is undertaking a review to establish whether, given the significant changes in the UK healthcare economy and in particular the increasing role the private sector is playing in the market, there may be benefits for its customers in a sale of Bupa Hospitals.
It is in preliminary discussions with potential purchasers, which “may or may not” lead to a decision to sell Bupa Hospitals, and a further announcement will be made “in due course”, says the group.
The move comes less than two years after Bupa sold nine UK hospitals to Legal & General Ventures for £85m and is expected to generate approximately £1bn.
Bupa makes only 11% of its revenues and 12% of its profits – or £43m last year – from its 26-strong hospitals business and less than a fifth of its insurance customers who go to a hospital visit a Bupa unit.
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