Health market inquiry tried to fill gaps in SA’s regulatory framework

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The system is fragmented and incomplete, and partial acceptance of the suggestions will fill only some of these gaps, leaving others unaddressed, writes Nicola Theron

The system is fragmented and incomplete, and partial acceptance of the suggestions will fill only some of these gaps, leaving others unaddressedThe past five years have been an intensive period of fact finding, data analyses, public hearings and data room exercises for the Competition Commission's health market inquiry panel, during which it worked through volumes of submissions and data.

This statement provides more insight into the extensive range of recommendations made by the panel. A careful reading of the recommendations shows that the inquiry was largely trying to fill the missing gaps in the current regulatory framework.

In its provisional report the panel recommended that hospitals also participate in the forum, but this idea has not found its way into the 2019 final report. This is a recognition of the robust negotiations between hospital groups and schemes, of which much evidence was provided to the panel during the investigation process.

In terms of recommendations pertaining to hospitals, it is important to note the differences between those contained in the provisional and the final reports. The 2018 provisional report contemplated remedies such as divestiture of hospitals and/or moratoria on new licences, to reduce the market shares of the large private hospital groups.

 

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