“Competition Protection” rejects the acquisition of “Alameda” by Cleopatra Group: “Creates a monopoly”

The Board of Directors of the Authority for the Protection of Competition and the Prevention of Monopolistic Practices, headed by Ibrahim Al-Sigini, issued an initial decision not to grant approval for the acquisition of Alameda Healthcare Group by Cleopatra Group, due to indications of a negative impact on the health sector in Egypt.

The agency said the decision was made in light of its enthusiasm to prevent the establishment of monopolistic entities in the hospital market in Egypt, and the consequent damage to the Egyptian citizen’s medical care and increase its prices.

The agency’s board of directors decided to notify Dr. Hala Zayed, Minister of Health and Population, of his initial report on the possible effects in the event that Cleopatra Hospitals Group acquired the Alameda Group of Hospitals, as after conducting an initial study of the market for multispecialized private hospitals in Cairo and Giza governorates, the agency found The aforementioned acquisition would lead to the creation of a monopoly entity in the healthcare market, by strengthening Cleopatra’s dominance over first-rate hospitals and second class within 80 kilometers or the governorates of Cairo and Giza at the latest, as a separate interested market.

The agency indicated that this would negatively affect the private health sector in Egypt, by raising the prices of medical services, lowering their quality, weakening the potential or desired investment opportunities in this sector and raising the prices of medical services provided. to the state, given the possibility of participation of the hospitals in the sector. Private health insurance system and mandatory emergency services.

Among the possible negative effects monitored by the device is that this leads to Cleopatra’s control over the medical competencies of the doctors and various medical teams, and to the control of their salaries because there is no alternative or strong competitor that can be replaced by Cleopatra in should you acquire your closest competitor, which is Alameda. For health care.