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Healthcare 'collusion' to be probed

An inquiry into pricing and possible collusion in the healthcare market will begin on 1 April 2013 according to the Competition Commission. The commission's divisional manager, Clint Oellermann, said the inquiry, which was expected to take two years, would examine the practices of hospital groups, administrators and practitioners, and would cover a broad range of issues.

The inquiry follows complaints to the commission about many practices and will probe whether there were agreements to charge set prices for procedures or consultations.

Oellermann said that because the complaints were broad and persistent, the inquiry would allow an examination of the healthcare industry as a whole. Pharmaceutical companies would not form part of the inquiry.

Commissioner Shan Ramburuth said companies and the public would be informed when the commission was ready to begin its work. Ramburuth said the experience and some of the structures of the commission's market inquiry would be used to make its consultations as broad as possible - from healthcare companies with their legal teams, to citizens who needed to raise an issue.

A market inquiry is a formal inquiry about the general state of competition in a market for particular goods or services, without necessarily referring to the conduct or activities of any particular firm. The commission can initiate a market inquiry if it has reason to believe that features of a market for any goods or services prevent, distort or restrict competition.

According to the commission, at the end of the inquiry, recommendations could be made to the Minister of Economic Development for new policy or regulations. The commission could also initiate its own complaint, which could be dealt with by the Competition Tribunal.

The amendment also authorises the Competition Commission to issue summons to compel people to appear before the inquiry.

SAPA