IFL insignia financial ltd

Ann: Investor presentation - IOOF FY 2018 results, page-149

  1. 5,426 Posts.
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    I think it’s the incentives rather than the independence that is crucial here.

    I’ll give you an example in another area. A gp works for primary healthcare, they consult in a building owned by primary which collocates a pathology and radiology service provider.

    When the gp sends a patient for a test they decide to use the in-house provider which may have the systems in place to send the report back efficiently and safely, they may have a radiologist on speed dial in house to direct questions to, and the in house provider is close by and a reasonable price.

    Now there may be an alternative nearby which offers a similar service.

    As long as the doctor isn’t incentivised to send their patient in-house, the independence isn’t an issue imo.

    If they get rid of vertical integration they are setting up a horror show in every industry that tries to establish effficiency.

    Next we’ll Have the aged care commission preventing conpanies from using their own in house nurses!

    It’s the incentives that need changing
 
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