Healthcare price probe coming

"That's when we are planning to kick off the inquiry," Competition Commission divisional manager Clint Oellermann told reporters in Johannesburg.

The inquiry, which was expected to take two years, would examine the practices of hospital groups, administrators, and practitioners.

"It will cover a broad range of things," said Oellermann.

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

Oellermann said because the complaints were broad and persistent, the inquiry would allow an examination of the healthcare sector as a whole.

Commissioner Shan Ramburuth said companies and the public would be informed when the commission was ready to start the inquiry. It had been working on it for some time and was waiting for section six of the Competition Amendment Act to come into effect.

Ramburuth said the experience and some of the structures of the commission's banking inquiry would be used to make its consultations as broad as possible - from healthcare companies with their legal teams, to the ordinary person who needed to raise a point.

A market inquiry is a formal inquiry in respect of 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 enquiry if it has reason to believe any feature or combination of features of a market for any goods or services prevents, distorts or restricts competition.

According to the commission recommendations could be made to the minister (of economic development) for new policies or regulations governing healthcare.

The commission could initiate its own complaint, which could be handled by the Competition Tribunal.

The amendment also gives the Competition Commission the ability to subpoena people to appear before it.

Source: Sapa via I-Net Bridge