Competition Commission Responds to Media Queries on the Withdrawal of GOF by SMA

4 April 2007

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(Issued on 4 April)

SMA has decided to withdraw the GOF based on advice that it has received from several of its legal advisors. The CCS welcomes this decision.
Competition authorities agree that fee guidelines are generally harmful to competition. The CCS believes that fee guidelines are inappropriate in today’s circumstances. Giving flexibility to medical practitioners to set their own fees in line with their business costs will ultimately benefit consumers.
The CCS would encourage medical practitioners to display their consultation fees so that consumers can make informed decisions. MOH’s website currently provides consumers with information on hospital bill sizes. This has enhanced competition between hospitals, which has in turn benefited consumers by bringing about more competitive prices.
The CCS would welcome other associations to take SMA’s lead and replace their fee guidelines with a system of published prices. This will also allow other consumers to benefit from greater transparency and competition of prices."