No need to break up private hospital groups, says health market inquiry

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The Competition Commission has backed down on its initial recommendation of divestiture for Netcare, Life Healthcare and Mediclinic

The Competition Commission’s health market inquiry has backed down on its recommendation that SA’s biggest private hospital groups sell off some of their assets to enhance competition in the sector.

In its interim report, published last July, it found competition in the private hospital market had largely failed, partly because it was such a highly concentrated market, dominated by the three JSE-listed groups. The health market inquiry's own dataset on estimated hospital beds by hospital group. Picture: Competition Commission

It also recommends the Competition Commission review its approach to “creeping mergers” to address the high level of concentration in the market.

 

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