COMPETITION RULING
Competition Tribunal rejects Afrocentric Health’s gripe
Afrocentric Health’s complaint that Discovery Health Medical Scheme (DHMS) and its administrator, Discovery Health, breached the Competition Act by collectively bargaining for better tariffs with private hospitals has been dismissed by the Competition Tribunal. The tribunal’s decision, announced on Friday, means the status quo is unchanged. Discovery Health will continue to carry out negotiations on behalf of DHMS and the 18 closed schemes it administers in much the same way as it has done to date. Closed schemes are restricted to employer or professional groups. The tribunal upheld objections brought by Discovery Health and DHMS and ordered Afrocentric to pay costs. Afrocentric owns medical scheme administrator Medscheme, which competes with Discovery for medical scheme clients. DHMS is SA’s biggest open medical scheme.
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