The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Perth, against the Western Australian branch of the Australian Medical Association and Mayne Nickless Ltd alleging that they were involved in price fixing and other anti-competitive conduct in breach of the Trade Practices Act 1974.
The ACCC has alleged that:
- from December 1995 until February 1997, the AMA (WA), on behalf of the Visiting Medical Practitioners at Joondalup Health Campus, entered into negotiations with Mayne Nickless to determine the terms and conditions under which the VMPs would provide their services for the care of public patients at the new Joondalup Health Campus (formerly Wanneroo Hospital);
- during those negotiations the AMA (WA) told Mayne Nickless that the VMPs would withdraw their services unless Mayne Nickless agreed to their terms;
- the negotiations culminated in the Joondalup Health Campus Visiting Medical Practitioner Agreement which, among other things, fixed the price at which the VMPs provided their medical services for the care of public patients.
The ACCC is alleging in its proceedings that, by reason of the above conduct:
1. The AMA (WA):
- arrived at an understanding the purpose of which was to prevent, restrict or limit the supply of medical services by some or all of the VMPs to Mayne Nickless;
- arrived at, and gave effect to, an understanding which fixed the prices for medical services supplied by the VMPs to Mayne Nickless for the care of public patients at the JHC;
- arrived at, and gave effect to, an understanding which substantially lessened competition in the market for medical services for the care of public patients; and
- the AMA Chief Executive, Mr Paul Boyatzis, and former President, Dr David Roberts, were each knowingly concerned in the AMA's contraventions, and
2.Mayne Nickless Limited:
- arrived at, and gave effect to, an understanding which fixed the prices for medical services supplied by the VMPs to Mayne Nickless for the care of public patients at the JHC;
- arrived at, and gave effect to, an understanding which substantially lessened competition in the market for medical services for the care of public patients; and Mayne Nickless's General Manager (Western Australia and Asia), Mr Martin Day, and JHC Chief Executive, Mr Ian MacDonald, were each knowingly concerned in the contraventions by Mayne Nickless Limited.
The ACCC is seeking court orders including declarations, injunctions, pecuniary penalties, costs and orders requiring the publishing of public notices and the institution of trade practices compliance programs.
The action was instituted after extensive and continuing discussions between the ACCC and the parties. A directions hearing for the matter is listed for 9 August 2000 at the Federal Court in Perth.