Private hospital deal will see three Wellington hospitals change hands

Monday, 21 September 2015

An Australian company has been cleared to buy two private Wellington hospitals, but only if it sells the one it already owns.

On Monday the competition watchdog gave clearance for the New Zealand business of Sydney-based Evolution Healthcare to buy Astron Limited, the majority owner of Bowen and Wakefield private hospitals.

However the sale is conditional on Evolution Healthcare selling Boulcott Hospital in Lower Hutt, which it paid more than $20 million for in late 2012.

The Commerce Commission said allowing Evolution to buy two more hospitals would leave it owning three of the four private hospitals in Wellington, with only Southern Cross Hospital as an independent competitor.

According to the commission Evolution had given an undertaking to sell Boulcott Hospital to an independent party which must be approved by the regulator.

'The Commission is satisfied that subject to the undertaking, the acquisition will not have or would not be likely to have the effect of substantially lessening competition in any of the affected markets,' Commission Chairman Dr Mark Berry said in a statement.

'Evolution's undertaking to divest its interest in Boulcott Hospital will return the market to its pre-acquisition structure, with three competitive options for health insurers, ACC, and patients.'

Evolution did not immediately provide comment on the regulator's clearance.