CADE imposes interim measures in health sector

On 6 March, the Office of the Superintendent General at CADE (SG) imposed two interim measures in health related markets to avoid price-fixing of medical fee-for-service and guarantee dental services free pricing.

In the first case, the SG determined that the company Sociedade de Médicos Cardiovasculares do Maranhão (Cardiovasc/MA) must not fix the  medical fee-for-service prices, in addition to stop demanding exclusivity from doctors. CADE’s decision will be published in the website of the Cardiovasc/MA and reported to the company’s partner health insurance plans within 5 days. A daily fine of BRL 20 thousand is to be applied in case of non-compliance.

An administrative proceeding was also launched to investigate evidence on other anticompetitive practices, such as monopoly, price-fixing, and establishment of exclusivity clauses to heart surgeons.

The second interim measure is related to the market of dental services. The SG determined that the Brazilian council of odontology (Conselho Federal de Odontologia - CFO) and other 24 regional odontology councils must delete publications in their social media that associate discounts in dental services with crimes or unethical behaviour. The measure also demands that the companies do not make new posts with similar content.

According to the decision, the councils must also not file new cases and request the stay of the ongoing cases filed against dental professionals who offered discounts in their services. The companies must comply with the decision within 5 days, under the pain of a daily fine of BRL 50 thousand in case of non-compliance.

In this context, CADE launched an administrative enquiry to investigate the alleged violation. If found guilty, the Brazil council of odontology would be violating the decision issued by CADE on a previous case (Case no. 08700.002535/2020-91), prohibiting councils from establishing prices for dental services.

It is important to highlight that interim measures are provided in the legislation and can be imposed when there is strong evidence or a reasonable concern that the practices under investigation cause or may cause harm that is irreparable, difficult to repair, or that makes the final decision on the case inefficient.

Access Cardiovasc’s Case nº 08700.005708/2020-23.