Australia’s competition regulator plans to block a collective boycott by private hospitals if funding talks with major insurers fail.
The Australian Competition and Consumer Commission (ACCC) intends to deny Catholic Health Australia’s request to allow its private hospital members to collectively boycott large private health insurers if negotiations break down.
The regulator stated it is not convinced the potential benefits outweigh the risks to the public.
However, the ACCC plans to allow Catholic Health Australia members to collectively negotiate funding terms with private health insurers and other financial organizations. Catholic Health Australia seeks approval to collectively boycott HCF, HBF, Medibank, Bupa, and nib if discussions fail.
ACCC Deputy Chair Mick Keogh acknowledged the private hospital sector’s challenges, particularly after COVID-19. But he warned that collective boycotts could harm both targeted businesses and participating hospitals. The regulator is also concerned about potential disruptions for patients relying on private hospitals.
Catholic Health Australia is also requesting approval to collectively negotiate with suppliers and boycott large suppliers if talks collapse.
The ACCC is inclined to approve this request, along with permission for members to share data for benchmarking. These authorizations, excluding the health insurer boycott, would be granted for 10 years.
The ACCC is accepting submissions on its draft decision until Jan. 24, 2025, before issuing a final ruling.
Catholic Health Australia represents a broad network of private hospitals, aged care, and community health facilities. Typically, private hospitals negotiate funding terms with insurers, which determine the benefits paid for insured patients. Other funding entities include aged care funders, government agencies, and third-party payers like the Repatriation Commission.
Meanwhile, in the U.S., attorneys general from Illinois, Maryland, New Jersey, and New York are joining the Department of Justice’s (DOJ) antitrust lawsuit to block UnitedHealth Group’s planned $3.3 bn acquisition of home health and hospice provider Amedisys Inc.
Filed in Maryland, the lawsuit argues the deal would reduce competition between two of the largest home health and hospice providers, especially after UnitedHealth’s 2023 acquisition of LHC Group.
The DOJ noted that UnitedHealth and Amedisys are fierce competitors. Amedisys’ former CEO and current board chair previously stated that their rivalry ensures accountability and better care quality.