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News of Folding Firms Causes Concern for Sufferers of Negligent Surgery

It has been revealed that hundreds of women whose lives were allegedly ruined by negligent cosmetic surgery believe they are going to be left unable to claim a penny in compensation. This news has come following from alleged news that the UK trading companies behind Europe’s biggest hospital for these type of procedures has gone into administration.


November 11, 2016

An investigation by The independent revealed that the subsidiary trading companies of The Hospital Group, whose Dolan Park facility in the Midlands – the largest purpose-built cosmetic surgery hospital in Europe – went into administration on the 6th of October, with 7 more companies expected to go into liquidation. During the investigation, a source connected to the group said, however, that ‘it is business as usual’ as it appears that the hospital is still accepting patients and hasn’t closed down.


The Hospital Group has reportedly been bought by a private equity firm from German, which has as a result created their own holding company. Following this, it has been claimed that this will leave sufferers of negligent surgery unable to claim any compensation from the companies that were part of the UK group.


As mentioned previously on this blog, this issue of mass unfairness was discussed in Parliament and Labour MP Kevan Jones was encouraged to create a private members bill, in order to offer better regulation of the £3.5bn-a-year industry and the marketing they carry out.


Referring to the 7 company liquidations, he told the Commons, “Some 80 per cent of creditors on the liquidator’s list are solicitors representing former clients. One suspects that that structure was put in place to avoid any potential for former clients to sue the company for negligence.”


He went on to say that “Despite the fact that a large number of women now have no recourse to law, the Hospital Group continues to operate and sell its products.”


It was reported that a lot of women are suffering as they have been promised compensation along with aftercare packages to ensure future safety regarding any complications that may arise. It was said that numerous women when complaining, were informed that the contract they had taken out for the procedures were not with the Hospital Medical Group but instead with the surgeon themselves who performed the procedure. In several cases, these surgeons have been bankrupt and under-insured leaving them with little chance of receiving compensation. As a result, these women are now having to use the NHS to pick up the complications of the cosmetic procedure.


The Hospital Group of companies was in fact bought by the German investment group Aurelius back in July. During the acquirement, Aurelius declined to disclose the true financial terms of the takeover, however, it has been claimed that the buyout came with 300 employees and “generated revenues of almost €40m (£36m) in 2015.”


When speaking about the Hospital Group, Aurelius also added that it had “reached a leading position in the British market” due to the fact that it already owned the Transform cosmetic surgery chain (For which they own 27 UK clinics). The Hospital Group going forward will continue to trade under the same name whilst being owned its new holding company.


A spokesman for The Hospital Group declined to answer questions on how the business was structured. He did state however that “The Hospital Group is compliant with the strict rules set out by both Trading Standards and the Advertising Standards Authority.


“The ongoing care and wellbeing of our patients and customers is of paramount importance to The Hospital Group. We take our obligations to patients with the utmost seriousness and do our very best to ensure patients are cared for both during and after any medical procedure by maintaining the highest standards of care. In the latest patient satisfaction audit conducted at our Dolan Park facility, 93 per cent of respondents rated our service as ‘excellent to good’.”


Finally going on to say, “We would like to reassure our patients and customers that all arrangements they have in place with The Hospital Group remain the same. All planned operations or procedures will go ahead as normal. The terms of our existing patients’ aftercare packages are still valid.”


Following the news, it can create a lot of uncertainty for the affected individuals. Having gone through a traumatic experience already, this isn’t welcome news but following this announcement, we urge you not to panic. With over 25 years of experience, there are solutions you can opt into if you believe you will lose the compensation you are owed. As always please get in touch if you have any questions regarding your case, we have experts on hand to help you through every stage.

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