ACCC grants interim approval for Catholic Health Australia's negotiations

ACCC grants interim approval for Catholic Health Australia’s negotiations | Insurance Business Australia

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ACCC grants interim approval for Catholic Health Australia’s negotiations

New authorization allows continuation of key agreements

Insurance News

By
Mav Rodriguez

The Australian Competition and Consumer Commission (ACCC) has granted interim authorization to Catholic Health Australia Limited, allowing the organization to maintain certain collective bargaining and data-sharing practices while a new application is under review.

The Aug. 28 decision permits Catholic Health Australia’s members to continue these activities under the same conditions as a previous authorization granted in 2014. However, the ACCC has not approved a proposed boycott of major private health insurers during this interim period.

Catholic Health Australia submitted its application on July 25, 2024, seeking to revoke an existing authorization and replace it with a new one. The organization represents a network of healthcare providers, including hospitals, aged care, and community care services, which are seeking to engage in collective bargaining and data sharing to streamline operations and enhance service delivery.

The interim authorization specifically allows for continued collective bargaining on healthcare funding arrangements and joint purchasing agreements among Catholic Health Australia’s members. Additionally, it permits a limited collective boycott of large suppliers—those with an annual Australian turnover exceeding $5 million or a global turnover exceeding $10 million—during the negotiation process.

The ACCC’s decision to grant this interim authorization enables these activities to proceed while it conducts a thorough review of Catholic Health Australia’s request for a new 10-year authorization. The review will include an assessment of feedback from interested parties before any final decision is made.