Competition Commission – Health Market Inquiry

The aim of the Health Market Inquiry is to assess whether the health market is working effectively from a competition standpoint. The inquiry was initiated by the Commission because it had reason to believe that there are features that prevent, distort or restrict competition in the private healthcare sector. The objective of the inquiry is to determine whether such features exist and, if they do, what recommendations to make. The panel’s focus is on “competition” and how certain practices limit competition, but keep the patient/consumer in mind at all times. ICPA has submitted two papers on the following key issues which it will address at the upcoming Public Hearing scheduled for 23 February 2016 in Pretoria.

• The appointment of Designated Service Providers by schemes and levying of penalty co-payments.
• The ownership of pharmaceutical manufacturing companies by retail pharmacy and the benefits corporate pharmacy derives from full vertical integration practices.
• The reimbursement models at which pharmacies are remunerated by schemes.
• The opening of ownership of pharmacy.
• The discounting of medicines.
• The relationship between general practitioners and courier pharmacy.
• The collusion between corporate pharmacies and shopping centre landlords.