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The Australian Competition and Consumer Commission has made the important decision to continue to allow certain cooperation between a group of not-for-profit health care providers while it deliberates on a reauthorisation.
For almost 20 years, the ACCC has permitted a group of Catholic Health Australia members to work collectively to improve clinical services, procure goods and services and advocate for policies that support the sick and the vulnerable.
The ACCC is currently considering an application from CHA to extend this permission, which was due to expire on 5 September 2024, into the future. The ACCC recently announced that not-for-profit health care providers that have been working together can continue to do so while the ACCC determines the outcome of CHA’s application – a decision due in December.
The arrangements to-date have allowed not-for-profit hospitals to collectively negotiate with multinational companies for better prices. It has also allowed them to work together with local suppliers to grow scale in Australia’s domestic health goods and services industry.
For the past 20 years, the existing arrangement has permitted benefits to the Australian public, including:
- Cheaper health care
- Greater mission and outreach work from CHA Members; and
- Improvements in clinical procedures.
CHA notes in its application to the ACCC that not-for-profit hospitals are facing significant viability challenges, making the ACCC Authorisation more important than ever.
“The continuing ability of not-for-profit charitable hospitals to work together is critical to their financial viability”, said Alex Lynch, Director of Public Health and In-Home Support Policy at CHA.
“Our considered and reasonable proposal is voluntary for all parties, will deliver clear and material public benefits and it’s highly improbable that it will diminish competition. These benefits include transactional cost savings and efficiencies for our hospitals, funding organisations and suppliers, an improved environment for investment, improvements in clinical procedures and broader social benefits through the charitable works undertaken by our members.”
