Mediclinic to challenge competition tribunal finding

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Private hospital group Mediclinic is poised to challenge the Competition Tribunal’s prohibition of its proposed acquisition of Matlosana Medical Health Services (MMHS) at the Competition Appeal Court, as it fights to expand its footprint in the North West.

Business Day reports that the battle between Mediclinic and the competition authorities highlights the conundrum facing all three JSE-listed hospital groups – Mediclinic, Netcare and Life Healthcare – as they face regulatory constraints to domestic expansion and have struggled to succeed in many of their offshore ventures.

Mediclinic’s plans to acquire MMHS — which owns two hospitals in Klerksdorp, a psychiatric hospital and a nursing training school — were blocked by the Competition Commission in 2017.

Mediclinic’s chief marketing officer, Biren Vilodia, said in the report that the company has evaluated the tribunal’s reasons for its decision and will take the matter to the Competition Appeal Court. The case is expected to be heard on 14 and 15 October.

Business Day report

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