12 November 2009 by

Medical schemes exemption application is refused

In 2007, the Board of Healthcare Funders (BHF) applied to the Commission to be exempted from the provisions of section 4 of the Act which prohibits competitors, such as medical aid schemes, from entering into agreements to fix a purchase or selling price or other trading condition or from acting collectively to such ends. The BHF had hoped to be exempted so as to use the collective bargaining power of medical schemes to negotiate better tariffs with healthcare providers. After a lengthy process, the Commission recently dismissed the BHF's application on the basis that allowing the schemes to collectively fix their trading terms with providers would diminish competition in the industry.

Chris Charter , Director, Competition
Pia Harvey, Senior Associate, Competition

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