Southern Cross Health Trust and Aorangi Hospital apply for authorisation to form joint venture
Published25 May 2011
The Commerce Commission has received a joint application under its streamlined authorisation process from Southern Cross Health Trust and Aorangi Hospital Limited.
The Commerce Commission has received a joint application under its streamlined authorisation process from Southern Cross Health Trust and Aorangi Hospital Limited. The application seeks authorisation for the two companies to merge their respective Palmerston North private hospitals.
When reviewing authorisation applications, the Commerce Commission must first determine whether the relevant acquisition will substantially lessening competition in a market. If there is no substantial lessening of competition, the Commission may give clearance for the acquisition. However, even if there is substantial lessening of competition, the Commission may determine that the public benefit outweighs the loss of competition.
Southern Cross Hospital Trust is a registered charitable trust that (through its ownership of Southern Cross Hospitals Limited) owns nine private hospitals in New Zealand and has shareholdings in a number of other private hospital joint ventures. Southern Cross operates Southern Cross Hospital Palmerston North which has two operating theatres and 26 in-patient beds. It also provides specialist consulting and elective surgical services to both day patients and in-patients.
Aorangi Hospital Limited is a privately owned company which operates Aorangi Hospital in Palmerston North. This facility has four operating theatres and 32 in-patient beds. Aorangi Hospital also provides a range of specialist consulting and elective surgical services to both day patients and in-patients.
If you would like to make a submission on this application please email registrar@comcom.govt.nz, with the reference 'Southern Cross/Aorangi' in the subject line of your email or send your submission to PO Box 2351, Wellington 6140.
In June 2009, the Commission introduced a streamlined process for the consideration of straightforward authorisation applications. The streamlined process enables the Commission to make decisions on straightforward applications as quickly as possible. In order for an application to be considered under the streamlined process, it must be relatively straightforward, have obvious public benefits and have relatively limited impact on competition in the relevant markets.
This application is the first made under the streamlined authorisation process. Under this new process, the Commission aims to issue a final determination on an application within 40 working days.
Previous Commission decisions
The Commission has previously considered an application from Southern Cross Health Trust and Aorangi Hospital to merge in 2008 (Decision 650). The Commission declined to grant clearance in Decision 650. This was on the basis that it was not satisfied that the proposed acquisition would not lead to a substantial lessening of competition in the markets for the provision of short-stay and in-patient hospital facilities and related services in the Mid-Central DHB region.
