Market Concentration Trends in the Private Healthcare Industry
The Competition Commission (CC) started with the enquiry into South Africa’s private healthcare sector at the beginning of 2014. One of the underlying themes emphasised in the background papers and terms of reference published by the CC is the increased consolidation in the private hospital market and the effect this may have on competitive dynamics. It is therefore important to understand market concentration in the private healthcare sector. This research note considers historical trends in market concentration of private hospitals, medical schemes and administrators. It finds that whereas the market concentration of private hospitals has remained relatively stable since 2004, the market concentration of medical schemes and administrators has increased over this period.