Cape Town - THE Health Funders Association (HFA) has lodged a complaint to the Competition Commission over the high prices charged by South Africa's three largest private pathology laboratory groups for Covid-19 Polymerase Chain Reaction (PCR) tests, during the pandemic in 2020 and 2021.
In this action, the HFA said it was representing 35 medical schemes.
In October 2021, the Council for Medical Schemes lodged a similar complaint with the Commission against the three main private pathology groups - Pathcare, Ampath and Lancet - regarding Covid-19 PCR test prices.
In December 2021, separate voluntary settlement agreements were reached between the Commission and the three private pathology groups.
In terms of the consent agreements, Ampath, Lancet and Pathcare all agreed to an immediate reduction in the price of Covid-19 PCR tests, reducing the prices from R850 to R500 with immediate effect.
Aggrieved, the HFA said: “The terms of the consent agreements between the Competition Commission and Ampath, Lancet and Pathcare respectively were on a ‘no-admission of guilt’ basis with none of the three main pathology laboratories admitting any infringement of the Competition Act nor any Consumer Protection Regulations.
“Notwithstanding this, the consent orders do not protect the three main private pathology groups against further complaints and investigations into the price of the PCR tests, or recoupment of damages if indeed the prices are found to have been excessive or agreed between them as competitors.”
The HFA’s complaint, alongside several medical schemes as co-complainants in the matter, aims to ensure that the excess costs associated with any excessive pricing of Covid-19 PCR test is refunded to medical schemes for the members’ benefit.
The HFA said these recoveries represented member funds and would accrue to the reserves of medical schemes.
Competition Commission spokesperson, Siyabulela Makunga, said: “We can now confirm that the Commission has received a complaint from the Health Funders Association (HFA). Our records show that the complaint was filed with us on Friday 3 March 2023. However, the Commission has completed this matter and concluded consent agreements with the three laboratories. Any further action is for the HFA to pursue,” he said.
Pathcare chief executive, Dr John Douglass, said he had been informed by the HFA that they had lodged a complaint with the Commission, but had not yet seen what the complaint entailed.
“We will cooperate fully with any investigation by the Competition Commissioner as we have done in the past. PathCare resolved the complaint of 2021 through agreement with the Competition Commissioner in December of 2021, to decrease the price of Covid-PCR to R500 which is still the price and to submit financial data as required by the Competition Commission for two years,” he said.
Ampath chief strategic officer, Samantha Swanepoel said: “We are waiting to hear the full detail of the complaint from the Competition Commission, and when we understand the nature of the complaint we will cooperate fully to understand any concerns raised.”
Dr Allison Glass added , on behalf of its managing partner, Dr van Deventer: “We, as Lancet Laboratories, have not received any notification of this complaint and are therefore unable to comment.”
*This story has been amended to reflect an updated response from the Competition Commission.
Cape Times