Netcare cries foul over Discovery executive’s involvement in market inquiry
Company says Competition Commission should have been open with industry for the sake of the probe’s independence
Private hospital group Netcare has raised questions about the independence of the competition commission’s health market inquiry, suggesting it may have been influenced by SA’s biggest medical scheme administrator, Discovery Health. The inquiry is investigating the barriers to effective competition in the private healthcare market and published its interim report in July. Netcare alleged that the report’s chapter on the theory of supplier-induced demand and its findings were influenced by Discovery Health, the inquiry said in a statement issued on Tuesday. Supplier-induced demand is a phenomenon in which increased access prompts additional use of a service that would not otherwise have occurred; for example, an increase in the number of hospital beds in an area could trigger a surge in admissions. It is a sensitive issue, because supplier-induced demand leads to overservicing and drives up costs. Netcare said it was concerned by the fact that the report’s chapter on supplier-induced...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.