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Mediclinic’s North West acquisition cleared by the courts

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Private hospital group Mediclinic has announced that it has won its appeal against the Competition Tribunals prohibition of its proposed acquisition of Matlosana Medical Health Services (MMHS) in the North West province, reports Business Day. Mediclinic’s plans to acquire Klerksdorp-based MMHS had been blocked by the Competition Commission, which said at the time should the acquisition proceed, there would be substantial lessening of competition in the area, and prices were likely to rise.

The Competition Tribunal had upheld the commission’s recommendation in early 2019. The tribunal had said if the transaction was approved it would increase costs for both medical scheme members and patients who paid their own bills, and that it had evidence Mediclinic had previously attempted to leverage its dominance in one geographic region where it did not face much competition.

Mediclinic said that it was focused on delivering accessible, quality care at the best possible value for its patients. “We are delighted to expand our current care offering within the North West Province of SA. Mediclinic remains focused on delivering high-quality health-care services across the continuum of care and an excellent client experience,” said CEO Koert Pretorius.

The report says acquisition includes two multidisciplinary hospitals namely the 185-bed Wilmed Park Hospital and the 62-bed Sunningdale Hospital. In addition, the acquisition includes a 51% share in the 50-bed Parkmed Neuro Clinic psychiatric hospital.

Full Business Day report

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