The Australian Competition and Consumer Commission will not intervene in the acquisition of Mater Misericordiae Private Hospital in North Sydney by the Sisters of Charity, ACCC Chairman, Professor Allan Fels, said today.
The Sisters of Charity also own and operate St Vincent's Private Hospital, located in Darlinghurst, Sydney.
The ACCC sought comments from a large number of market participants, including health funds, health associations and other private hospitals in NSW, regarding the likely competition effects of the acquisition.
The ACCC examined the impact of the acquisition on competition at various geographic levels, including the state, metropolitan and local levels. It was considered that the acquisition was unlikely to result in a substantial lessening of competition at any of these levels.
"After the acquisition, the two Catholic hospitals will still face competition from a number of large private hospitals, such as Sydney Adventist, North Shore Private, Prince of Wales and St George Private", Professor Fels said.
Earlier this year the ACCC decided not to approve an arrangement between the merger parties and Sydney Adventist Hospital. The arrangement was for negotiating with health insurance funds on the level of fees payable by each of the funds to the hospitals for services to their members.
There were aspects of that arrangement which the ACCC considered would lead to a reduction in competition between the hospitals. It concluded that the proposed arrangement would not result in benefits to the public that would outweigh detriment arising from its anticompetitive nature.