Concern over health funds merger
6 Feb 2002
The private hospitals industry has raised concerns over the possible merger of two of Australia’s largest health funds.
Amid speculation regarding merger talks between MFB and AXA Health, the private hospital sector has expressed concerns over consolidation of the private health insurance industry. The private hospitals are wary of having only two large players in the private health insurance sector. They are worried that the dominant funds could potentially operate purely on ‘return on investment’ terms and effectively price the elderly and chronically ill out of the market. The combined MBF/AXA fund and Medibank Private would have about 60 per cent market share.
The ACCC would closely investigate the merger however it would likely be given the go-ahead as the market share of the merged fund is within ACCC guidelines.
The Australian Financial Review, p3, 6/2/02.
by Karen Hawkins
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