The Ramsay Health Care Limited (ASX: RHC) share price will be on watch today after providing an update on its Federal Court battle with the Australian Competition and Consumer Commission (ACCC).
Why was Ramsay in court with the ACCC?
The ACCC brought proceedings against Ramsay Health Care in the Federal Court in 2017 for alleged anti-competitive conduct involving the misuse of market power and exclusive dealing in the Coffs Harbour region.
The competition regulator alleged that Ramsay became aware that a group of Coffs Harbour surgeons were planning to establish a competing private day surgery facility in the area.
In response to this competitive threat, the ACCC alleges that senior Ramsay executives told these surgeons that if they were involved with the proposed new day surgery they would have their access to operating theatre time at Baringa Hospital substantially reduced or withdrawn.
It believes Ramsay engaged in this conduct for the purpose of deterring or preventing a new entrant in the day surgery market in Coffs Harbour, or substantially lessening competition in that market.
What did the Federal Court decide?
After the market close on Thursday, Ramsay announced that the Federal Court dismissed the proceedings that were brought against it by the ACCC.
According to the release, the judge found that Ramsay had not engaged in anti-competitive conduct in the Coffs Harbour region in relation to the proposed establishment of a competing private day surgery facility.
A spokesperson for the private hospital operator commented: "Ramsay takes its obligations under the Competition and Consumer Law very seriously and was disappointed when the ACCC instituted proceedings. Ramsay worked cooperatively with the ACCC throughout the investigation."
"We maintained throughout the investigation that we had not acted inappropriately, and we are pleased that the Federal Court has also reached this conclusion. Ramsay hospitals are competitive in the marketplaces in which we operate, because we invest heavily in our theatres, facilities, services, equipment, and staff training and development, to ensure we attract the best doctors to work with us," they concluded.
