CUF will move towards the construction of a new hospital in the Algarve as a direct consequence of the Competition Authority’s decision on the group’s entry into the capital of Hospital Particular do Algarve (HPA). The obligation arises within the scope of the conditional approval of the operation, which provides for the acquisition of 75% of HPA by CUF.
The regulatory authority’s decision comes after several months of in-depth analysis of the impact of the business on the private healthcare market in the south of the country, where the HPA holds a particularly relevant position.
Competition Authority Assessment
According to the ECO news portal, the operation has been under in-depth investigation since last summer, during which time the Competition Authority analyzed the effects of the concentration on access, prices and negotiations with insurers and health subsystems.
According to the same source, the entity led by Nuno Cunha Rodrigues concluded that the commitments assumed by CUF allow the identified competitive risks to be mitigated, which is why it decided not to oppose the completion of the deal.
Hospital that will have to be created in the Algarve
One of the main commitments imposed involves the development and construction of a new medium-sized hospital in the Algarve region. The publication adds that this unit will subsequently be sold to a third health operator.
If, however, an alternative project from another provider emerges for the construction of a hospital in the region, the website explains, this initiative will be evaluated by both the CUF and the Competition Authority, and may lead to a review of this obligation.
Alternative scenario provided for in the agreement
If none of the envisaged solutions materialize, CUF undertakes to sell an equivalent hospital from its national network. The same source states that this clause works as an additional guarantee of replacement of competition in the market.
Furthermore, writes the portal, CUF will also have to sell an activity whose associated turnover exceeds 15 million euros, and is currently analyzing the various possible options to fulfill this commitment.
Trading rules and price limits
The agreement with the Competition Authority also imposes obligations in terms of commercial practices. According to the same source, CUF is committed to maintaining current conditions with insurers and health subsystems, with maximum annual update limits.
Limits on price increases applied to uninsured users are also foreseen, as well as reinforced transparency, reporting and monitoring duties, which remain until the divestments are fully implemented.
Business context and the HPA group
After the favorable decision, the next step will be the signing of the purchase and sale contract. The value of the operation was not disclosed. According to , the CEO of CUF, Rui Diniz, highlighted that the partnership allows us to reinforce the capacity to respond to health needs and continue to invest in the quality of care.
The HPA Saúde group, founded in 1996, includes five hospitals and 17 clinics in Alentejo, Algarve and the Autonomous Region of Madeira, with a strong presence in the Alvor and Portimão areas and chaired by João Bacalhau.
Also read:
