The OFT's market study was initiated in response to a formal complaint from Circle on the anti-competitive nature of the private healthcare market in September 2010.

The complaint was based on alleged anti-competitive agreements between national private healthcare providers and private medical insurance providers. Circle argued that these agreements - known in the industry as network agreements - act as a barrier to new entrants and result in consumer harm through restricted choice. The OFT responded to Circle's complaint by launching a market study into private healthcare in December 2010, which concludes with today's report.

In its report, the OFT accepted the arguments on the high barriers to entry in private healthcare and the consumer harm resulting from networks. In addition, having scrutinised the various models of consultant incentivisation, the OFT found no issue with Circle's model of sharing ownership with clinicians.

The OFT also accepted Circle's argument about the anti-competitive impact of incumbent providers' practice of offering loyalty payments to consultants in return for patient referrals.

Commenting, Circle Chief Executive Officer, Ali Parsa, said: "Circle has fought since our inception for a freer and fairer healthcare system. We welcome today's decision which we believe will lead to the unleashing of entrepreneurialism and the unlocking of innovation at a time when our country needs it most.

"This calls time on the anti-competitive games that for years have stifled innovation, shackled clinicians and shut down choice."

At 12:03pm: (LON:CIRC) share price was +3p at 200p

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