MyCC warns private healthcare providers over potential price-fixing
KUALA LUMPUR: Proposals by associations of private medical practitioners in several states to introduce new service-related charges may infringe the Competition Act, said the Malaysia Competition Commission (MyCC).
Its chairman, Tan Sri Idrus Harun, said the commission expressed grave concern over recent news reports regarding proposals by associations of private medical practitioners in Sarawak, Penang, Selangor and Kuala Lumpur to introduce new service-related charges.
These include additional fees such as prescription charges, registration fees, regulatory compliance charges and facility fees, which are either already being implemented or currently under consideration.
"Under Section 4(2)(a) of the Act, general practitioners are considered 'enterprises', and any agreement between enterprises, including decisions by associations to set prices or trading conditions, may be deemed anti-competitive.
"Such conduct is categorised as a serious infringement, commonly referred to as a hard-core cartel, and constitutes a breach of the Act regardless of whether it is implemented or merely agreed upon.
"When associations collectively agree to introduce new charges, such action may be interpreted as an agreement to fix trading conditions.
"Similarly, any recommendation of a price range, whether binding or not, may be regarded as price fixing under Section 4 of the Act," he said in a statement.
As such, Idrus said the Society of Private Medical Practitioners Sarawak, the Private Medical Practitioners' Association of Selangor and Kuala Lumpur, and the Penang Medical Practitioners Society are reminded of the likelihood of infringing the Competition Act.
"Therefore, MyCC strongly urges the Society of Private Medical Practitioners Sarawak to retract its advisory issued to members encouraging the implementation of specific new fees.
"MyCC also calls upon the Private Medical Practitioners' Association of Selangor and Kuala Lumpur and the Penang Medical Practitioners Society to refrain from convening meetings or taking any steps that may result in collective decisions to fix fees or introduce uniform charges, as these actions may be considered infringements under the Act."
Under the Competition Act, if an enterprise is found to have infringed the Act, MyCC may impose a financial penalty of up to 10 per cent of its worldwide turnover for the duration of the infringement.
Idrus said MyCC will not hesitate to investigate and take strict enforcement action against any party engaged in anti-competitive conduct.
He said MyCC was closely monitoring this matter and strongly urges all stakeholders, especially those in the healthcare sector, to fully comply with the Act.
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