Prof. Jaime King1, Prof. Joanna Manning1
1Auckland Law School, University of Auckland, Auckland, Aotearoa / New Zealand
Biography:
Bio to come
Abstract:
In the last several years, private healthcare practices in Aotearoa New Zealand have begun consolidating through the vertical acquisition of downstream practices. Providers may purchase medical practices they refer to or private equity may acquire a vertical array of healthcare providers that have the potential to refer to one another. This consolidation has occurred largely in the areas of primary care, acute care, and radiology. Concerns regarding the potential for harm to patients and competition arising from financial conflicts of interest have been raised for the last several years. In 2022, complaints about potential conflicts of interest and harm to competition arising out of these healthcare transactions were reviewed and dismissed by the Medical Council of New Zealand (MCNZ) and the Commerce Commission. Similarly, an application for judicial review filed with the High Court of New Zealand was unsuccessful on the grounds that such behaviours had yet not led to increased utilisation or patient harm. As such, the consolidation has continued apace. This presentation identifies and describes these transactions, examines their implications for patients and providers, and analyses the potential ethical and legal challenges that they create. The presentation will consider various approaches to address such financial conflicts of interest, including avoidance, disclosure, and monitoring, as well as their respective advantages and disadvantages, and provide recommendations for regulators.