Competition Commission Extends National Hospital Network Exemption

Department of Economic Development

The National Hospital Network’s (NHN) exemption in terms of the Competition Act has been extended.

The economic development department published notification of the extension in Government Gazette 42010.

The Competition Commission granted the conditional exemption for a period of five years commencing on 1 November 2018 and ending on 31 October 2023.

The conditions focus on grace period condition, global fees and annual submission of information.

The NHN is a non-profit company controlled by its members comprising independent private hospitals that run day clinics, sub-acute facilities and psychiatric facilities.

The Competition Commission found that the “market dynamics remained the same and as a result, the exemption is still required to enable NHN members to be able to continue growing in competition with the big three hospitals”.

The Commission also found that the “conduct in respect of centralised procurement and global fees will improve NHN’s ability to achieve the said objectives”.

One of the conditions is that NHN members not controlled or owned by historically disadvantaged persons have 24 months in which to transform their shareholding.

NHN must also submit information to the Commission on an annual basis.

Sabinet Cape Town Office