Bupa has confirmed it is to de-list a further 25 BMI hospitals from 1 January after the two parties failed to agree contract terms for treating Bupa patients.
It means a total of 37 BMI hospitals around the country will not be used by Bupa for treating new patients after the provider previously announced it was to cease using 12 other locations.
Bupa reiterated that any clients who were mid-treatment or had been pre-authorised for treatment at the de-listed hospitals would not be affected in any way and that treatment would continue at the same hospital, even if it ran in to 2012.
However, from today, clients contacting Bupa requiring treatment in the new year in one of the affected locations will be directed to another hospital.
The insurer threatened to pull the plug on more hospitals earlier this month after it revealed BMI had quoted prices 20% higher than another national hospital group.
A statement from Bupa said: "Regrettably, we have now decided to remove further BMI hospitals from our recognised hospital lists from 1 January 2012.
"As our negotiations had reached a point where it was extremely unlikely that we could agree terms before the current contract expires, on Monday 12 December 2011 we asked BMI to clarify the out-of-contract prices it will charge for treating Bupa members at its hospitals in order to ensure some certainty of the prices they may charge from January 2012.
"Despite an assurance from BMI that they would send us their out-of-contract pricing by midday on Friday 16 December 2011, they did not do this.
"As it was so close to the expiry of the current contract, we needed to make a decision on which BMI hospitals would remain on Bupa's recognised hospital lists to ensure Bupa members were not being charged unduly high rates for treatment at BMI hospitals.
"For this reason, we had no realistic option but to remove all BMI hospitals from 1 January 2012 where we believe reasonable alternative arrangements can be made for our members," it added.
The provider said it would continue discussions and hoped to return BMI hospitals to its recognised lists if appropriate commercial terms were agreed.
It is contacting members and advisers to update them and apologised for any inconvenience the action may cause clients.
‘This is not a decision we have taken lightly,' the statement continued.
‘We consider this action vital to maintain and improve the affordability of private healthcare for our members.
‘In a typical month around three Bupa members per 1,000 would receive treatment at one of the BMI hospitals we are removing from our lists,' it added.