Commerce Commission Application from NZGA – Consultation

The NZSA has been invited to make a submission to the Commerce Commission on an application by the New Zealand Gynaecology Association (NZGA).

The NZGA is seeking authorisation and interim authorisation from the Commerce Commission to collectively negotiate the terms on which its members will provide private gynaecological services to Southern Cross-insured patients, with Southern Cross Health Insurance (SCHI) and/or hospitals, for a period of up to 10 years and to enter a standstill agreement for up to six months. A full notice of the application is published on the Commission’s website.

The NZSA will make a submission to the Commerce Commission on behalf of its members and welcomes member feedback to inform this. We welcome any comments via email to Rebecca.burton@anaesthesia.nz. We encourage you to read the Commission’s Statement of preliminary issues before submitting your feedback, as this outlines the issues they are considering during their assessment and matters they seek further information and feedback on.

At this stage, the Commission is focused on identifying, assessing and quantifying the benefits and detriments that are likely to arise from the Proposed Arrangements.

The statement of preliminary issues is a lengthy document, whilst we encourage you to read it in full, specific sections of importance include:

The application summary and background:

• 2: Summary of the application (pg 1)
• 12-20: Background to the proposed arrangement (pg 3-4) in particular 16 and 18 (pg 4) and 19 (pg 5)
• 21-23: The proposed arrangements for which NZSG is seeking authorisation (pg 6-8)
• 48: Reasoning for interim authorisation (pg 14)

Sections relating specifically to anaesthetists:

• 49 & 49.4: Specific questions from the Commission (pg 14) on whether interim authorisation should be granted, including the extent of any harm to anaesthetists and patients if interim authorisation is not granted.
• 53 & 54.4: Markets – Specific questions from the Commission on market definitions, flow-on effects to private anaesthetist services for gynaecological procedures. Specifically, 54.4 other relevant markets that may be affected (pg 15-16).
• 57: Specific questions from the Commission on what is likely to occur as a result of these arrangements  (pg 17). Specifically:
  • 57.1.4: Whether the proposed arrangements rebalance or create an imbalance in the bargaining process.
  • 57.2.1: On the likely change in structural relationships including anaesthetists.
  • 57.5: The ability of competitors in any relevant market to continue to compete if the proposed arrangements are authorised.
• 71 & 71.5: Specific questions from the Commission (pg 21-22) on the potential detriments, specifically 71.5 relating to the flow-on effects to anaesthetists.

Further useful sections:

• 24: Proposed measures and conditions of the proposed arrangements (pg 7)
• 38: The potential benefits and detriments the Commission is considering and the value of these (pg 10)
• 64: Specific questions from the Commission (pg 18-19) on counterfactuals and likely outcomes from bilateral negotiations.
• 68: The benefits identified by NZSG (pg 19-20)
• 70: Specific questions from the Commission (pg 19-20) on the potential benefits
• 72 – 73: On whether there are other potential ‘likely’ counterfactuals (pg 23) and the benefits and detriments of the Proposed Arrangements against potential counterfactuals. May help to read in conjunction with Tables 1 and 2 in Section 10 (Counterfactuals) in the Public Application Document (pg 42-44)

The Commission has published its statement of preliminary issues (here) and a public version of NZGA’s authorisation application (here).
Anaesthetists are also invited to submit their own response directly to the Commerce Commission. Information on how to do this is included in the Statement of preliminary issues section 78, page 23.