The South African Medical Association (Sama) and the Hospital Association of South Africa (Hasa) agreed on Monday to stop participating in fixing the selling price of medical services in contravention of the Competition Act, the Competition Tribunal said.
It said in a statement Hasa has also agreed to pay administrative penalties of R4,5-million and Sama will pay R900 000 in accordance with the provisions of the Act.
The agreement forms the basis of two consent orders confirmed by the tribunal.
The tribunal said the orders resulted from the Competition Commission’s investigation of the health-care sector.
The commission found that Sama determined, recommended and published tariffs for the pricing of the provision of medical services annually, and Hasa determined, recommended and published benchmark tariffs for hospital services annually, which had the effect of fixing a selling price and, therefore, contravening the Act.
In terms of the Act at any time during or after completion of an investigation, if the commission and the respondent agree to an appropriate order, the tribunal may without hearing evidence, confirm the agreement as a consent order.
Sama is an association of medical practitioners in the country and Hasa is an association of private hospitals and ambulatory clinics. — Sapa