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Mediclinic cleared to take over Matlosana hospitals

Mediclinic has been cleared to acquire a majority interest in Matlosana Medical Health Service after the bid was initially blocked by the Competition Tribunal, which feared that the move would raise costs for patients.

In a statement released on Friday, the private hospital group said the approval was granted by the Competition Appeal Court, with the effective date around mid-year.

Last year, the Competition Tribunal prohibited the merger between Mediclinic Southern Africa and Matlosana in the North West province, saying it would result in higher tariffs for the hospitals that would be acquired, among other reasons.

For its part, the Competition Commission had - in its recommendation to the Tribunal to prohibit the merger - argued that patient experience and quality healthcare at the target hospitals would diminish and the acquisition would give Mediclinic greater bargaining power with medical schemes.

"Following various approval processes, the matter was referred to the Competition Appeal Court which has now ruled in favour of the acquisition, with an expected effective date around the middle of 2020," Mediclinic said. 

The acquisition includes two hospitals, the 185-bed Wilmed Park Hospital and the 62-bed Sunningdale Hospital, as well as a 51% share in the 50-bed Parkmed Neuro Clinic psychiatric hospital.

The merger will also result in Mediclinic being the dominant player in the market for the provision of private, multidisciplinary acute inpatient hospital services in the area. Mediclinic would have a market share of 63%.

Mediclinic Southern Africa CEO, Koert Pretorius, hailed the merger process, which was initiated in 2015, saying it would expand the group's current care offering in the North West Province.

Describing Wilmed Park as one of the best hospitals in the province, he said: "The existing management team at the hospital will remain in place to ensure that the business continues to deliver the same high levels of care under the Mediclinic brand, as we expand our focus on delivering accessible, quality care at the best possible value for our patients." 

Mediclinic currently has 77 hospitals, five sub-acute hospitals, 14 day case clinics and 22 outpatient clinics.

Compiled by Sibongile Khumalo

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