Mediclinic objects to health market inquiry’s remedies for market concentration
Private hospital group Mediclinic has taken issue with the health market inquiry’s preliminary concern about market concentration in the sector, and its call for submissions on possible divestiture and a moratorium on issuing new licences."Mediclinic does not agree with these findings, and will be engaging further with the health market inquiry on this topic. Mediclinic does not believe the proposed remedies are appropriate," it said on Monday. The inquiry was launched by the Competition Commission four-and-a-half years ago to investigate the barriers to effective competition in the private healthcare market, and released its preliminary findings on July 5.Mediclinic said it believed there was robust competition between the four big players — the national hospital network and JSE-listed hospital groups Netcare, Life Healthcare and Mediclinic. "Hospital groups are able to leverage on economies of scale, enabling the provision of high-quality, cost-efficient care, to the benefit of th...
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