DHS to seek a negotiated settlement with Competition Commission

[Johannesburg, 17 February 2004]

Following the Competition Tribunal’s recent decision to uphold the Competition Commission’s notice of apparent breach of its merger conditions, medical software and switching company Digital Healthcare Solutions (DHS) will be seeking to negotiate a settlement of its dispute with the Commission. A letter to this effect was delivered to the Commission on 17 February. Hennie du Plessis, the Chief Executive of DHS, said that the DHS Board of Directors had decided to put an end to a disagreement with the Commission that started almost two years ago, and that it will now seek to implement a solution in consultation with the authorities. Du Plessis said, “DHS is mindful of its responsibility to customers and the market, and we fully endorse the principle of an economy in which every player has the opportunity to compete fairly and openly”.

Du Plessis said that the negotiation option was selected “notwithstanding unhappiness with certain fundamentals of the Tribunal’s decision”. As an example, he said, “the fact that DHS is denied the opportunity for real-time claims submission to Medscheme and Discovery Health leaves our business exposed to potential abuse of market power by these healthcare funders as shareholders in Healthbridge”, and added “DHS is however currently pursuing this matter with the Competition Tribunal through the complaints process allowed for in the Competition Act”.

Peter Watt, Chief Executive of DHS shareholder Comparex Africa and chairman of the DHS Board, said, “although an appeal to the Competition Appeal Court was an option seriously considered by the Board, the directors agreed that the healthcare industry needed solutions, not another prolonged legal battle. The DHS Board is confident that the Commission will facilitate a solution to level the playing field”.

Du Plessis acknowledges the implications of seeking a settlement, one being to willingly afford a competitor access to DHS customers. “This definitely raises the bar on performance for our management team, however we have been dealing within a very competitive environment since our formation and I am confident that we have the talent and intellectual property to up our game considerably.”

Editorial Contacts

Digital Healthcare Solutions
Hennie du Plessis
E-mail : hennie@dhsolutions.co.za
Tel No : (011) 265 5406

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