Does the National Health Fund (NFZ) discriminate some potential business partners who want to sell orthopedic equipment and assisting means in Śląskie Voivodeship? The antitrust proceedings initiated by the President of UOKiK will explain it

Pursuant to the antitrust law, abuse of a dominant position by the undertakings is prohibited. This means that the operator in a given market acts independently of its competitors, contractors and consumers, and cannot use certain practices allowed for smaller companies

Pursuant to the antitrust law, abuse of a dominant position by the undertakings is prohibited. This means that the operator in a given market acts independently of its competitors, contractors and consumers, and cannot use certain practices allowed for smaller companies. It is forbidden e.g. to impose prices or unjustified refusals to conclude agreements with a specific group of undertakings.

The National Health Fund has a dominant position in the market of organizing health care services financed from public funds. This is the only entity authorized to administer the money derived from the healthcare contributions. Providing health services (e.g. treatment of patients or sale of medical devices) for persons covered by public health insurance is only possible after conclusion of the contract with the NFZ.

In January 2011, the President of UOKiK initiated the explanatory proceedings concerning the agreements on the supply of orthopedic equipment (e.g. artificial limbs, orthopedic shoes or wheelchairs) and assistance means (e.g. hearing aids or therapeutic contact lenses) applied by the National Health Fund. After signing such a contract, medical service providers may obtain a refund from the National Fund. Office analysis showed that the Śląskie branch of NFZ makes the contract conclusion dependent on the potential contractors’ possession of at least one point of providing benefits within Śląskie Voivodeship. Thus, it is not possible to conclude contract with NFZ by an entity that is willing to provide services in this area through subcontractors.

Therefore, the President of UOKiK initiated antitrust proceedings, which will check if the discrimination against these contractors who want to sell orthopedic equipment and assistance means in Śląskie Voivodeship did not constitute abuse of a market position by the National Health Fund. This could result in elimination of undertakings from the market (e.g. medical wholesalers) that do not have their branches in Śląskie Voivodeship – the area of the Śląskie branch of NFZ, but who intend to order provision of the aforementioned benefits to subcontractors (pharmacies, medical shops). During the proceedings, the Office will e.g. investigate whether such action is justified in organizational, legal terms, or for other reasons.

According to the Act on competition and consumer protection, antitrust proceedings in antitrust cases should be completed no later than five months from the date of their initiation. In case of identifying the abuse of a dominant position by the undertaking, the President of UOKiK may impose a financial penalty on the undertaking of up to 10 percent of revenue earned in the year preceding the decision.

The instituted proceedings do not constitute the first action of UOKiK regarding the practices of the National Health Fund. For example, in 2009, the President of UOKiK imposed on the National Health Fund a fine exceeding PLN 1.1 million for favourising their existing business partners in the health benefits tender. In May 2011 the Court of Competition and Consumer Protection upheld this decision. NFZ appealed against the decision to the Court of Appeal.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. +48 22 827 28 92, 55 60 106, 55 60 314
faks +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl