The Australian Competition and Consumer Commission (ACCC) proposed to deny authorization for Catholic Health Australia's private hospital members to collectively boycott health insurers, including Medibank Private (ASX:MPL) and nib Holdings (ASX:NHF), when collective negotiations for funding arrangements fail, according to a Thursday statement by the regulator.
The regulator cited concerns that the proposed boycott could cause "significant" public harm, including disruption for health fund members seeking treatment in private hospitals.
However, the ACCC proposed to permit the members to collectively negotiate hospital funding arrangements with private health insurers and other funding organizations. It also suggested to allow the group's members to share information for benchmarking purposes.
The members also seek authorization to boycott HCF, HBF, and Bupa, per the statement.
The authorization, excluding the private health insurer boycott, would last 10 years, the regulator said.
The ACCC is seeking public submissions on the draft determination by Jan. 24, 2025.
Shares of nib holdings rose almost 1% in recent Thursday trade.
Price (AUD): $5.52, Change: $+0.05, Percent Change: +0.91%
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