Private medical practitioner bodies urged to retract advisory on service charges

The Malaysia Competition Commission (MyCC) has called on private medical practitioner associations in several states to withdraw their advisory encouraging members to impose new service-related charges.

MyCC chairperson Idrus Harun said associations in Sarawak, Penang, Selangor and Kuala Lumpur are proposing to introduce additional fees, such as prescription charges, registration fees, regulatory compliance charges and facility fees, either already implemented or under consideration.

He said any decisions by associations, including those representing private general practitioners (GPs) to introduce these additional fees, may infringe the Competition Act 2010 (Act 712).

“Under Section 4(2)(a) of the Act 712, GPs are considered ‘enterprises’ and any agreement between enterprises which includes the decision by associations to set prices or trading conditions may be deemed anti-competitive,” he said in a statement today.

He highlighted that when associations collectively agree to introduce new charges, such action may be interpreted as an agreement to fix trading conditions.

Similarly, any recommendation of a price range, regardless of whether it is binding or not, may be regarded as the conduct of price fixing under Section 4 of the Act 712.

Potential violation

Idrus reminded the Society of Private Medical Practitioners Sarawak (SPMPS), the Private Medical Practitioners’ Association of Selangor and Kuala Lumpur (PMPASKL) and the Penang Medical Practitioners Society (PMPS) of the likelihood of infringing the Act 712.

“We hereby strongly urge SPMPS to retract its advisory issued to members encouraging the Implementation of specific new fees.

“We also call upon PMPASKL and PMPS to refrain from convening meetings or taking any steps that may result in collective decisions to fix fees or introduce uniform charges, as these actions may be considered infringements under the Act 712,” he said.

Idrus noted that under the Competition Act 2010, if an enterprise is found to infringe the Act, MyCC may impose a financial penalty of up to 10 percent of its worldwide turnover for the duration of the infringement.

He stressed that MyCC will not hesitate to investigate and take strict enforcement action against any party engaged in anti-competitive conduct.

“We are closely monitoring this matter and strongly urge all stakeholders, especially those in the healthcare sector, to fully comply with Act 712.

“MyCC remains steadfast in its mission to uphold a competitive, healthy and transparent market, safeguarding both consumer welfare and the integrity of the Malaysian economy,” he emphasised.

- Bernama

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