The Georgian National Competition Agency has approved the planned concentration in the medical inpatient and outpatient services sector. The case concerns the purchase of a 50% share of "PSP Pharma" in "MedCapital" by GMSC Medical Services Company of Georgia.
In order to examine the compatibility of the concentration with the competitive environment, the Agency evaluated the competitive environment separately in the inpatient and outpatient services markets. In particular, in 2022, 192 inpatient medical facilities were operating in the country, the volume of the bed fund was 18,158 beds, the market concentration index Herfindahl-Hirschman Index (HHI) - 196.96, which is an indicator of a low concentration market. As a result of the implementation of the concentration, the HHI index is -64.14.
The Agency evaluated the outpatient market in 2022 according to the medical facilities participating in the state universal health care program (ambulatory, inpatient, inpatient-outpatient) and the amounts paid accordingly. 148 outpatient facilities (including branches) are included in the mentioned program, which are operated by 70 undertakings. The market volume was 107,651,299 GEL. Market Concentration Indicator Herfindahl Hirschman Index HHI=1629.74, which is an indicator of a moderately concentrated market. After the implementation of the concentration, the Herfindahl Hirschman index increases - ∆HHI=2.51 units to 1632.25 units.
The Agency determined that the planned concentration between the "GMSC Medical Services Company of Georgia" and "Medcapital" does not substantially limit effective competition and is compatible with the competitive environment.
In 6 months of 2023, the concentration of 12,119 companies registered in Georgia was verified. From January 2023, the Agency has approved 5 concentrations.
