Medicinic has emerged victorious in its first round against against Life Healthcare Group’s bid to continue offering renal dialysis services at five Mediclinic hospitals, including Vergelegen, Morningside, Panorama, Potchefstroom and Newcastle.
The Cape Times reports that the Competition Commission’s favourable ruling for Mediclinic 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 the 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 several co-located, stand-alone dialysis clinics. It does not operate mobile units.
Before 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 allow Life Renal Care to provide these services at its facilities as it had decided to in-source renal dialysis.
But Life argued that Mediclinic’s conduct constituted exclusionary acts in contravention of the Competition Act – and, among other reasons, said Mediclinic was preventing dialysis patients and their referring nephrologists/specialist physicians (suppliers) from dealing with a competitor.
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 said: “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… the tribunal found that Life had not made out a prima facie case that Mediclinic is dominant.”
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Older patients' survival gains from dialysis ‘modest’ – US study