Competition Commission to probe Max Super Speciality Hospital

Competition Commission has ordered an investigation against Max Super Speciality Hospital and Becton Dickinson India for alleged anti-competitive practices with respect to healthcare services.
The Commission has ordered a detailed probe by its investigation arm Director General (DG) after finding "prima facie" case of contravening competition norms.
Becton Dickinson is a multinational company that makes disposable syringe under the brand name 'Emerald' while Max Super Speciality Hospital is a leading multi-speciality hospital in the national capital.
According to the Commission, the informant is primarily aggrieved by the conduct of the opposite parties in charging a higher MRP for disposable syringe manufactured by Becton Dickinson India (OP 1) and brought from an in house pharmacy located within the hospital network of Max Super Speciality Hospital (OP 2).

The price was found to be higher compared to MRP (Maximum Retail Price) of the same product in the open market.
"Prima facie, the Commission is of the considered opinion that the conduct of OP 2 in charging higher price, through printing higher MRP on disposable syringe in connivance with OP 1, from the informant amounts to imposition of unfair price," which is in violation of competition norms," CCI said.

Becton Dickinson and Max Super Speciality Hospital could not be contacted immediately for comments.
Ordering the probe, the Commission said that in case the DG finds that the opposite parties have violated competition norms, then the role of the "officials/ persons" who at the time of such contravention were in-charge and responsible for the conduct of the business, should also be investigated.

For the complaint filed by one Vivek Sharma, Competition Commission of India (CCI) considered 'provision of healthcare services by super speciality hospitals in Delhi'
As per the order dated November 17, CCI is of the view that prima facie there is violation of Section 3 of the Competition Act that pertains to abuse of dominant position.
The regulator also noted that there is force in the submission made by the complainant that Max Super Speciality Hospital charged a price that was almost double than that of the same product available in the open market.
"It is observed that once a patient is admitted in the hospital of OP 2, she/he has hardly any option to purchase the product from the open market other than from OP 2.

"Taking advantage of such situation OP 2, in connivance with OP 1, has charged a higher price by raising the MRP of DS which is unfair," the order said.
DS refers to disposable syringe with needle size 10 ml of B D Emerald Brand.
(REOPENS DCM 92)
When contacted, sources at Max Healthcare said it believes it conducts business in a fair manner that is compliant with all laws, including the Competition Act, and would cooperate with the CCI's Director General.
According to them, at this preliminary stage in the process, the CCI has not made any conclusive finding.
Max Healthcare runs the Max hospitals.