The Competition Commission has referred four major diagnostic medical imaging equipment suppliers to the Competition Tribunal for prosecution over alleged anti-competitive conduct in the servicing, repair and maintenance of medical imaging equipment.
The Commission’s spokesperson, Siyabulela Makunga, said GE South Africa, GE Medical Systems South Africa, Siemens Healthcare and Philips South Africa Commercial were referred to the Tribunal following an investigation into their alleged conduct in the diagnostic medical imaging aftermarket.
The companies supply and service diagnostic medical imaging equipment nationwide, including X-ray, ultrasound, magnetic resonance imaging (MRI), computed tomography (CT) scanners and PET/CT systems.
The Commission alleges that the companies denied or restricted independent clinical engineers access to essential resources needed to compete with them in the servicing, repair and maintenance market.
These resources allegedly included spare parts, diagnostic software, service keys, technical information and specialised training.
The Commission said the alleged restrictions had the effect of limiting competition in the aftermarket for servicing and repairing the equipment, potentially resulting in higher costs and fewer repair options for healthcare facilities.
“Reliable DMI equipment is particularly important in South Africa,” the Commission said, noting that healthcare providers face a combined burden of diseases including cancer, cardiovascular disease, diabetes, hypertension, HIV and tuberculosis.
The Commission warned that when diagnostic imaging equipment is unavailable, delays in diagnosis can postpone treatment and potentially worsen patient outcomes.
The impact is particularly serious at public and rural healthcare facilities, where prolonged equipment downtime and limited access to service providers could leave hospitals unable to diagnose and treat patients timeously.
The Commission said diagnostic imaging systems can cost millions of rand and typically remain in service for between 10 and 15 years, making access to software updates, spare parts, preventive maintenance and repairs essential.
It said effective servicing was also important to extend the operational life of the equipment, contain healthcare costs and ensure continuity of care.
“The impact is especially severe in public and rural facilities,” the Commission said.
The Commission alleges that the respondents’ conduct contravenes section 8(1)(c), alternatively section 8(1)(d)(ii), of the Competition Act 89 of 1998, as amended.
According to the Commission, the alleged conduct undermines competition and contributes to higher servicing and repair costs in an industry that is critical to the delivery of healthcare.
The Commission said access to functioning diagnostic medical imaging equipment was directly linked to the affordability and accessibility of healthcare services, as well as patients’ constitutional right of access to healthcare.
The Tribunal will now determine whether the respondents contravened the Competition Act and, if so, impose appropriate remedies.