Note from Linda Wallace - Head of BUPA Intermediary Sales

I am writing to update you on our discussions with BMI about treating Bupa members from 1 January 2012.
At the end of last year, we decided to remove 37 BMI hospitals from our recognised hospital lists from 1 January 2012 because our contract with BMI was due to expire and we had been unable to arrive at a mutually agreeable arrangement for treating Bupa members from that date.

I am pleased to let you know that we have now reached an agreement with BMI which is in the long term interest of Bupa members. We have agreed a number of improvements to the way Bupa and BMI will work together in the future which we believe will improve the quality, effectiveness and efficiency of care delivered to Bupa members.

As a result of this agreement, with immediate effect the vast majority of BMI hospitals are now included on Bupa's recognised hospital lists (Extended Choice, Partnership and Participating Hospital Networks). BMI Gisburne Park Hospital, BMI Lancaster Hospital and BMI Castle Consulting Suite, remain out of network.

We have now reinstated pre-authorisation with immediate effect for new in-patient, day-case and out-patient treatment for our members at the 34 BMI hospitals which are recognised once again.

We regret any inconvenience that members and consultants have experienced in recent weeks. Throughout the negotiations, including the out-of-contract period, both organisations remained fully committed to maintaining continuity of patient care.

We believe that the new arrangements provide a good basis to address the affordability of private healthcare while maintaining current standards of high quality care for Bupa members.