Morning MEDtalks with Dr KK Aggarwal

New Delhi, September 12,2018 :

Competition concerns in the healthcare sector (Advocate Anupam Sanghi and Dr KK Aggarwal): The Competition Commission of India (CCI) has formed a prima facie view that Max Super Speciality Hospital is dominant in the market of “provision of healthcare services by super speciality hospitals in Delhi” and is abusing its dominant position by charging a higher price of Disposable syringe, with needle size 10ml of B. D. Emerald Brand’, in terms of higher MRP, which is almost double the price of the same product available in the open market.

The CCI has directed an investigation in the matter by the Director General (DG). The matter would open up investigation in entire super speciality healthcare services. CCI has earlier given prima facie views against few entities that resulted in entire industry being investigated. For eg. in the automobile, pharmaceutical and insurance sector to name a few.

The repercussions of CCI’s investigation could be serious –

Financial impact / monetary penalties

• Heavy Penalties – up to 3 times of the profit of the last 3 preceding financial years or
• Up to 10% of average turnover of the last 3 preceding financial years
• Third parties claims
• Significant legal costs

Impact on individuals/ officers

• Penalty up to 10% of average income of the last 3 preceding  financial years
• Impact on the management
• Penalty up to 1 crore for not complying with the direction of the CCI or the DG
• Penalty up to 1 crore for furnishing wrong information to the CCI or the DG
• Imprisonment by the Criminal Court
• Loss of management time and distraction
• Damage to goodwill / reputation of the organization

Impact on agreements and business transactions

• Modifications or revocation of agreements
• To discontinue and not to re-enter into agreements

What needs to be done?

• Prepare a defensive strategy based on critical competition analysis of CCI’s order
• Representation before the DG / CCI, Appellate Tribunal (NCLAT) and Courts
• Identify the risk and liabilities and suggest mitigating measures
• Compliance and Training

The HIV AIDS (Prevention and Control) Act 2017, which had been passed by the Parliament has been now implemented. The Act provides for the prevention and control of the spread of HIV-AIDS and for the protection of human rights of the affected persons including the rights of healthcare providers. In a notification issued by the Ministry of Health and Family Welfare, dated 10th September, 2018, the Govt. said, “In exercise of the powers conferred by sub-section (3) of section 1 of the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act, 2017 (16 of 2017), the Central Government hereby appoints the 10th day of September, 2018, as the date on which the provisions of the said Act shall come into force.”

The first case of monkeypox has been recorded in the UK in a Nigerian national staying at a naval base in Cornwall who probably contracted the infection before travelling to the UK, as per Public Health England. Monkeypox is a rare disease that is caused by infection with monkeypox virus. It was first discovered in 1958 when outbreaks of a pox-like disease occurred in monkeys kept for research. The first human case of monkeypox was recorded in 1970 in the Democratic Republic of Congo during a period of intensified effort to eliminate smallpox. Since then monkeypox has been reported in humans in other central and western African countries… (Medscape, CDC).

WHO and the World Bank Group convened the first meeting of the Global Preparedness Monitoring Board(GPMB), a new body set up to monitor the world’s readiness to respond to outbreaks and other health emergencies. The GPMB is chaired by Dr Gro Harlem Brundtland, former Prime Minister of Norway and former WHO Director-General and Mr Elhadj As Sy, Secretary General of the International Federation of Red Cross and Red Crescent Societies, and includes some of the most notable leaders in global health.

Dr KK Aggarwal
Padma Shri Awardee
Vice President CMAAO
President HCFI