Little Company of Mary Health Care Ltd - proposed acquisition of The John James Memorial Hospital Ltd
Type of assessment
Informal Review
Reference
24928
Acquirer(s)
Little Company of Mary Health Care Ltd
Target(s)
The John James Memorial Hospital Ltd
Industry
Private hospitals
Outcome of assessment
Not opposed
Total review days *
15
Commenced public review
19th July 2006
Date completed
8th August 2006
Market definition
The ACCC considered the acquisition in the Canberra markets for:
(i) the supply to health funds (and entities undertaking similar functions - for
example, the Repatriation Commission) of the right for their members to be
supplied with general overnight hospital services at specified rates; and
(ii) the supply to health funds (and similar entities) of the right for their members
to be supplied with psychiatric hospital services at specified rates.
Competition analysis
The ACCC considered that the acquisition would be unlikely to result in a substantial lessening of competition. Post-acquisition, the Little Company of Mary Health Care Ltd would own two of the three general overnight private hospitals in Canberra. However, this was unlikely to significantly increase the level of bargaining power of the Little Company of Mary Health Care Ltd when negotiating with hospital services purchasers. Among other things, the ACCC took into account the negotiation of Hospital Purchaser Provider Agreements on a national basis, and Little Company of Mary Health Care Ltd's relatively small portfolio of hospitals nationally. Market inquiries were largely unconcerned with the proposed acquisition.
Review timeline
Date
Event
19th July 2006
ACCC commenced review under the Merger Review Process Guidelines.
28th July 2006
Closing date for submissions from interested parties
8th August 2006
ACCC announced that it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
