The Commission for Protection of Competition has addressed allegations for committed abuse of a dominant position by two medical treatment facilities

03 08 2021

In the context of the global Covid -19 pandemic, the Commission has made monitoring of the supply of goods or services related to consumers’ health its priority.

In fulfilment of the above mentioned priority, the Commission investigated the behaviour of medical treatment facilities, related to providing access to services or equipment to competitive medical treatment facilities and addressed allegations for committed infringements under Art. 21, item 5 of the Law on protection of competition (LPC), as follows:

By Statement No. 789/29.07.2021, ruled on case No. CPC-228/2020, the CPC has addressed to “Dr. Georgi Stranski multiprofile university hospital for active treatment” EAD (Dr. Georgi Stranski Hospital), Pleven, allegations for committed infringement, manifested in an abuse of a dominant position on the market of providing access to medical treatment facilities to medical services by a nuclear medical laboratory. The behaviour of Dr. Georgi Stranski Hospital expressed in refusal to enter into a contract for the provision of services by its own nuclear medical laboratory, which prevents the participation of medical treatment facilities in the markets for the diagnosis and treatment of pulmonary thromboembolism without fibrinolytic and for the diagnosis and treatment of pulmonary thromboembolism with a fibrinolytic, may prevent, restrict or distort competition and impair consumers’ interests.

 By Statement No. 790/29.07.2021 delivered under case No. КЗК-366/2020, the CPC has addressed allegations to "Dr. Bratan Shukerov multiprofile hospital for active treatment" AD ("Dr. Bratan Shukerov" Hospital), Smolyan, for committed infringement, manifested in an abuse of dominant position on the market of providing services for “access to equipment, facilities and specialists for performing X-ray scopy and graphy“ to other health care facilities in the city of Smolyan. The behaviour of the Hospital may prevent, restrict or distort competition and affect the interests of consumers through an unjustified refusal to provide a service to "SMOLYANI medical centre" OOD ("SMOLYANI MC" OOD) to hinder its economic activities.

The proceedings before the CPC, have been initiated upon formal requests from affected competing health care facilities in connection with the refusal of the respondent parties to enter into contracts for the provision of medical services within the scope of nuclear medicine (by “Dr. Georgi Stranski” Hospital) and diagnostic imaging (by "Dr. Bratan Shukerov" Hospital). These services are absolute preconditions for carrying out activity by the applicants in the vertically connected markets for the provision of health services in clinical pathways and outpatient procedures under a contract with the National health insurance fund (NHIF).

Based on the evidence, collected in the proceedings, the Commission found that each of the defendants is the only undertaking in the defined relevant markets, which has the necessary equipment and services for concluding a contract with the NHIF. For the other medical establishments in the district or in the city, it is economically unjustified to invest funds in the construction of their own units for performing medical activities, the use of which is rarely necessary in practice.

On the basis of all the facts and circumstances, established in the proceedings, the Commission considers that the dominant position of the defendant companies is due to the lack of alternatives to the services, provided by them in nuclear medicine and X-ray diagnostics. Thus their refusal to enter into contracts with competing medical treatment facilities for the use of the services in question, impedes the activities of the latter.

The analysed behaviour of “Georgy Stranski Hospital” and “Bratan Shukerov Hospital” leads to the exclusion of potential competitors from the affected markets. Thus, it affects the consumer interests, by limiting their access to medical services, which could have dangerous consequences for their health.

Within 45 days, the parties have the right to submit their written objections to address the allegations. The period runs from the day of the Statement receipt.