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

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.

The HMI was established to probe the barriers to effective competition in the private healthcare sector, and began work in January 2014. It recommended divestiture and a moratorium on new licences for the three largest firms. A moratorium on new licences would have meant the hospital groups could not open new facilities, or increase the number of beds in existing ones.In its final report, published on Monday, the HMI maintains its findings about the three groups but no longer recommends divestiture.

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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