Competition Commission Investigates Cimas Over Unfair Pharmacy Advantage
Cimas Medical Aid is under investigation for alleged unfair trade practices after Zimbabwe’s Competition and Tariff Commission launched a probe into claims that the medical aid society may be limiting patient choice and giving its own pharmacies an unfair advantage.
The investigation follows a complaint lodged by a rival pharmacy, with authorities stressing that no wrongdoing has yet been established. The probe is being conducted under the Competition Act [Chapter 14:28], with the regulator calling for public submissions within 14 days of the notice’s publication.
According to newZWire, the Competition and Tariff Commission is examining whether Cimas is restricting competition in the health sector.
“The Competition and Tariff Commission is looking into whether Cimas is limiting patient choice and giving its own pharmacies an unfair advantage. The investigation is a response to a complaint filed by a rival pharmacy, and no wrongdoing has been proven yet,” newZWire reported.
Rival Pharmacy Complaint Sparks Probe
The investigation centres on allegations that Cimas Medical Aid Society declined to register Belnash Investments, trading as Harvey Brown Pharmacy, on its direct payment system.
Authorities say this allegedly forced patients to pay cash when seeking services from the pharmacy.
The Commission said the matter raises concerns about patient choice and market competition.
“It is alleged that Cimas Medical Aid Society declined to register Belnash Investments trading as Harvey Brown Pharmacy as a healthcare service provider on its direct payment system,” the Commission said.
The notice further states that other similar service providers were allegedly registered under the same system.
“This alleged conduct is said to have occurred notwithstanding the registration of other similarly placed service providers on the same system.”
The Commission also indicated that patients may have been affected financially.
“The non-registration on the direct payment system resulted in Cimas Medical Aid Society’s members being forced to pay cash for services rendered at Harvey Brown.”
Concerns Over Patient Choice
Authorities also raised concerns that the alleged practice could limit patient options.
The Commission said Cimas operates its own pharmacy near the rival outlet.
“Cimas Medical Aid Society provides healthcare services and operates a pharmacy within close proximity to Harvey Brown Pharmacy.”
It added that there are allegations that members may have been indirectly steered toward Cimas-owned facilities.
“Cimas Medical Aid Society is alleged to be indirectly referring its members to its own pharmacy.”
The regulator warned that the alleged conduct could create barriers for competitors.
“The alleged practice may result in members’ choice of healthcare service providers being limited… and may also create barriers to entry and expansion of Harvey Brown Pharmacy and other healthcare providers.”
No Wrongdoing Established Yet
However, the Competition and Tariff Commission emphasised that the investigation does not mean Cimas has breached the law.
“The commencement of an investigation neither presupposes that the conduct being investigated is anti-competitive nor that Cimas Medical Aid Society has violated the provisions of the Act.”
The Commission said it is inviting submissions from stakeholders and members of the public within fourteen days from publication of the notice.
“The Commission hereby gives notice to all interested stakeholders and the general public to submit their written representations… not later than fourteen (14) days from the date of publication.”
The outcome of the investigation is expected after the regulator reviews submissions and completes its assessment.
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