The Competition Tribunal has ruled against Life Healthcare Group, preventing them from providing renal dialysis services at five Mediclinic hospitals. This decision comes amid ongoing investigations into allegations of exclusionary practices, as Mediclinic aims to insource its dialysis services.
Image: File photo: Twitter/Mediclinic SA
THE Competition Tribunal has turned Life Healthcare Group’s (Life) bid to continue offering renal dialysis services by patients at five Mediclinic hospitals including Vergelegen, Morningside, Panorama, Potchefstroom and Newcastle
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 South Africa (collectively ‘Mediclinic’).
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.
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 legitimately decided to in-source its renal dialysis services.
In their complaint, Life argued that Mediclinic’s conduct constitutes exclusionary acts in contravention of the Competition Act and among other reasons submitted that Mediclinic is preventing dialysis patients (customers) as well as their referring nephrologists or specialist physicians (suppliers) from dealing with a competitor of Mediclinic Renal.
Mediclinic maintained that 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 remarked: “Given the nature of the alleged contravention, the Tribunal’s key consideration was whether or not Mediclinic is dominant in the relevant market(s). The Tribunal found that the market for the provision of acute multidisciplinary inpatient private hospital services in South Africa appears prima facie to be the plausible relevant market.
“On the evidence before it, the Tribunal found that Life had not made out a prima facie case that Mediclinic is dominant. The underlying complaint will continue through the Commission’s investigation process.”
Mediclinic said: “We welcome the Tribunal’s finding which recognises legitimate vertical integration in the dialysis market. As a responsible corporate citizen, Mediclinic is committed to conducting our business in accordance with Competition laws and all other applicable legislation.”
Enquiries to Life had not been answered by deadline.
Cape Times