The Competition Authority (Thursday 11th July 2013) confirmed that it
has issued a warning to the Irish Medical Organisation (IMO) which
represents general practitioners (GPs). This warning relates to a
reported decision of the IMO of 10th July threatening collective action,
including the possible withdrawal of certain services by its members.
An IMO press release issued on 10th July 2013 stated that at a meeting
of its GP committee on 8th July 2013, it passed a motion that
unanimously condemned the reduction in GP fees which the Government
proposes to introduce under the Financial Emergency Measures in the
Public Interest Act 2009. In particular, the GP Committee decided at
that meeting to immediately withdraw from:
- Primary Care Teams;
- Community Intervention Teams, and
- Clinical Care Programmes (Chronic Disease).
Section 4 of the Competition Act and Article 101 of the Treaty on the
Functioning of the European Union prohibit agreements among
undertakings that have the object or effect of restricting or distorting
competition. The Authority considers that these competition law
prohibitions apply to self-employed GPs. The Authority further considers
that an agreement to take collective action or any subsequent
collective action on foot of such agreement breaches Section 4 and/or
Article 101 of the Treaty. This is consistent with the view that the
Authority has taken in previous cases involving trade associations
representing pharmacists, hauliers, travel agents and veterinary
surgeons.
The Competition Authority has written to the IMO setting out its
objection to this alleged breach of competition law in this instance.
The Authority has advised that it intends to take all necessary
enforcement action if the IMO fails to rescind its decision concerning
the withdrawal of services. The Authority has requested that the IMO
immediately remove the press release and publish on its website an open
undertaking to reverse this decision.
The Authority has issued this press release, both as a form of public notice to
GPs generally, and to indicate the Authority’s commitment to oppose
vigorously collective market behaviour by competitors that prevents,
restricts or distorts competition.
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The
Competition Authority has confirmed it has commenced legal proceedings
against the Irish Medical Organisation (IMO) following their refusal to
rescind a decision of its GP Committee made on 8 July 2013 to withdraw
certain GP patient services in protest at proposed Government cuts to
fees paid to GPs under the GMS contract.
The
IMO’s decision was made at a meeting of its GP Committee and was the
subject of a press release published by the IMO on 10 July. The
Authority had given the IMO until 12 o’clock yesterday to remove the
press release relating to the decision from their website and to publish
an undertaking to reverse the decision. Following the expiry of the
deadline, the Authority received correspondence from the IMO’s
solicitors stating that the IMO would not be complying with the
Authority’s request.
In
light of this development, the Authority has today filed papers in the
High Court seeking (i) a declaration that the IMO’s decision to withdraw
the services concerned with a view to preventing the Minister for
Health and Children from reducing the fees payable under the GMS
contract is prohibited under both Irish and EU competition law and is
therefore void and (ii) an interlocutory injunction requiring the IMO to
retract and rescind its decision of 8 July and not to issue any further
decisions to the same or similar effect and (iii) to remove from the
IMO’s website its press release of 10 July relating to this matter and
to publish on its website an open undertaking to reverse its decision of
8 July.
The relevant papers are being served on the solicitors acting for the IMO in this matter.
The hearing of the Authority’s interlocutory application is expected to take place within the next week.
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The
Competition Authority welcomes the undertakings given in the High Court
today by the Irish Medical Organisation (IMO) to suspend the decision
of its GP Committee dated 8 July 2013 to withdraw from providing certain
services to patients. The IMO’s decision was in opposition to proposed
Government cuts to fees paid to GPs under the General Medical Scheme
(GMS).
Pending the outcome of proceedings in the High Court, the IMO has undertaken:
(i)
to suspend the decision of its GP Committee dated 8 July 2013, referred
to in the statement of 10 July 2013 (the Statement), relating to the
collective withdrawal of certain medical services by General
Practitioners, by close of business on 24 July 2013
(ii) to remove the Statement from its website by close of business on 24 July 2013
(iii) to inform all of its members of the giving of these undertakings no later than close of business on 25 July 2013.
This
means that GPs cannot now collectively withdraw from providing the
services referred to in the IMO Statement to patients pending the
outcome of the proceedings initiated by the Authority. The Authority
initiated the proceedings because it believed that the collective
withdrawal of these services would have a negative impact on patients
and was an attempt to fix the fees paid to GPs under the GMS contract.
The Authority took the view that such action infringes both Irish and
EU competition law.
