THE Office of Fair Trading (OFT) is to investigate an alleged cartel between American healthcare companies that supply the National Health Service.

Last week Department of Health officials made a formal complaint to the OFT about three firms suspected of colluding to increase the prices they charge the NHS. The complaint refers to the recent tender for the annual £80m market in pacemakers.

This inquiry is expected to be a test case for suspected widespread price-fixing among health-service suppliers.

Price fixing by suppliers of generic drugs is already being investigated by the Serious Fraud Office.

The three firms named in the OFT complaint are Guidant, a division of Boston Scientific, St Jude Medical and Medtronic. It is also understood that the Department of Health urged the OFT to investigate whether the Association of British Healthcare Industries (ABHI) was involved in any collusion.

NHS trusts negotiate direct with healthcare firms, which has led to widespread variations in prices across the country. The Department of Health decided to centralise procurement to cut costs. It came under intense pressure from lobbyists and trade groups to drop centralised procurement.

Patricia Hewitt, the health secretary, is also said to be under pressure from the American government to dilute such proposals, which could cost US firms hundreds of millions of dollars. Pacemakers and implantable cardioverter defibrillators cost up to 50% more in Britain than in America.

The Department of Health recently put out a tender for pacemakers but none of the three American firms, which account for 90% of the market, submitted valid bids. This amazed officials at the Department of Health, who now suspect foul play and believe the Americans are trying to sabotage the new system.

A spokeswoman said that after failing to “obtain a framework agreement for implantable devices such as pacemakers — to drive better value for money in the NHS — the Department of Health has asked the OFT to consider issues relating to the operation of the market.” The OFT declined to comment.

Last week the firms under scrutiny denied any wrongdoing. Medtronic said there were a number of reasons why it had not bid for the contract. “Medtronic believes the commodity procurement approach and service restrictions contained in the tender would ultimately have led to a reduction in patient care, physician choice and innovation,” said a spokesman.

The ABHI said: “The ABHI was not involved in collusion of any kind. These allegations are completely untrue.”

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