Tribunal dismisses bid against Mediclinic
The Competition Tribunal has dismissed Life Healthcare Group's (Life) bid to continue offering renal dialysis services to patients at five Mediclinic hospitals including Vergelegen, Morningside, Panorama, Potchefstroom and Newcastle, reports the Cape Times.
The ruling was made while investigations are ongoing into the complaint regarding the exclusion of Life Healthcare Group (Pty) Ltd and Life Renal Care (Pty) Ltd (collectively ‘Life') from providing in-hospital dialysis services to patients.
The tribunal dismissed an application for interim relief brought by Life against Mediclinic Southern Africa (Pty) Ltd and Mediclinic Renal Services SA.
Mediclinic Renal Services provides dialysis services within Mediclinic hospitals and operates a few co-located and stand-alone dialysis clinics. It does not operate mobile units.
Prior to 2024, third-party providers (including Life Renal Care) were permitted to administer dialysis at Mediclinic hospitals. Chronic and acute inpatients receive dialysis through in-hospital or mobile dialysis units. In-hospital units are fixed to the hospital premises, typically at intensive or high care units and provide bedside treatment.
Mobile units transport equipment to hospitals where they are granted access and storage space for their equipment.
Chronic outpatients, who require ongoing dialysis, can receive treatment either at in-hospital units or at standalone clinics operating independently of hospitals.
The Cape Times reports that Mediclinic subsequently gave notice that it would no longer permit Life Renal Care to provide these services at its facilities as Mediclinic said it had decided to in-source its renal dialysis services.
Life argued that Mediclinic's conduct constitutes exclusionary acts in contravention of the Competition Act and submitted Mediclinic is preventing dialysis patients and their referring nephrologists or specialist physicians (suppliers) from dealing with a competitor of Mediclinic Renal.
Mediclinic maintained it had legitimately decided to insource its renal dialysis services previously provided by Life Renal Care particularly because it had no oversight or authority over the practices, hygiene, infection control, security and other reasonable protocols of third party service providers.
In its ruling, the tribunal found Life had not made out a prima facie case Mediclinic is dominant.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
