ACCC Taking Action Against Calvary For Limiting Competition

For imposing by-laws that are alleged to have substantially lessened competition, the ACCC has taken action in the Federal Court against Little Company of Mary Health Care Limited and its subsidiary Calvary Health Care Riverina Limited.
Specifically, the by-laws regulate the use of Calvary medical facilities by entering medical practitioners into a contract with them which grants them rights to use Calvary's medical facilities. In 2011, Calvary introduced a new of by-laws that governed medical practitioners' use of their facilities - the by-laws allowed Calvary to refuse to grant or revoke the medical practitioner's use of the facilities if that person had become involved with one of Calvary's business competitors.
The ACCC has claimed that the by-laws are in contravention with the Competition and Consumer Act 2010, by reducing competition in day surgery markets, especially in Wagga Wagga.
The ACCC's Chairman Rod Sims with the increase of independent day surgeries, it hasn't been uncommon for medical practitioners to treat different patients at a number of medical facilities.
“The ACCC is concerned that by-laws or contractual conditions of this kind applied by a significant national health care organisation could prevent the establishment of new day surgeries. The consequence of this would be to limit the availability of day surgery procedures to consumers," Mr Sims said.
The ACCC is seeking pecuniary penalties, declarations and costs.
The matter is listed for a directions hearing before Justice Foster in Sydney on the morning of 4 February 2015.
Medical practitioners that are surgeons will generally have rights to use multiple medical facilities including hospitals and day surgeries. This allows increased access for consumers to surgical procedures. Where medical practitioners are involved in the operation of a medical facility they may also still treat consumers at other medical facilities.
Calvary is a national healthcare organisation. It operates 10 private hospitals and a range of other medical facilities across Australia. In addition to its medical facilities, it operates a number of retirement and social welfare facilities and services.