Dr KK Aggarwal
Padma Shri Awardee
Vice President CMAAO
No corporate hospital can dictate terms to smaller healthcare establishments.
The clause: Prohibition of abuse of dominant position 4.3
No hospital shall abuse its dominant position: There shall be an abuse of dominant position if an establishment.
(a) directly or indirectly, imposes unfair or discriminatory condition in providing a service or
(ii) price in purchase or sale of goods or service.
Dominant position means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to operate independently of competitive forces prevailing in the relevant market; or affect its competitors or consumers or the relevant market in its favour.
Predatory price means the sale of goods or provision of services, at a. price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.
Prohibition of agreements: 3
(1) No hospital or association or doctor or association of persons shall enter into any agreement in respect of provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India.
(2) Any agreement entered into in contravention of the provisions shall be void.
(3) Any agreement entered into between two establishments or associations or doctors or associations of persons or between any person and establishment which—
a) directly or indirectly determines purchase or sale prices
b) limits or controls production, supply, markets, technical development, investment or provision of services
c) shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way
d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition:
Provided that nothing contained in this sub-section shall apply to any agreement entered into by way of joint ventures if such agreement increases efficiency in production, supply, distribution, storage, acquisition or control of goods or provision of services.