Last week the Australian Competition and Consumer Commission (ACCC) released a statement regarding the proposed acquisition by Ramsay Health Care Limited (ASX: RHC) of a close competitor Wollongong Day Surgery.
The 'Statement of Issues' made reference that the ACCC was "concerned that the proposed acquisition is likely to substantially lessen competition in the supply of day surgery services to private health funds and the Department of Veteran Affairs."
As I highlighted here, private health insurers are currently fighting a losing battle against the dominance of other industry participants including private hospital operators such as Ramsay. Judging by the ACCC's release it appears that the authority might be of a similar view and looking to do something about it.
Investors should expect both governments and regulatory bodies such as the ACCC to take an increasingly hard line approach towards companies such as Ramsay and its peers including Healthscope Ltd (ASX: HSO) and Sonic Healthcare Limited (ASX: SHL) in an attempt to not lessen the affordability of health care any further for the general public.
It's all about offshore
Given the increasing restrictions being placed on Ramsay's growth ambitions in Australia it is lucky for shareholders that the company has already begun to successfully diversifying into overseas jurisdictions. Already the group has expanded into France, the UK, Indonesia and China and investors can expect more overseas manoeuvres as the group attempts to build growth opportunities.
A big pipeline of growth
Ramsay has been an incredibly successful growth story to date and the exciting scenario for shareholders is that the group may be able to achieve continued growth at an above average rate thanks to a big pipeline of global growth opportunities. While the dream run in Australia might be coming to an end, it's possible that the international dream is only just beginning.
