Chang Hua Doctors Association of Chinese Medicine held a meeting to set a uniform price on out patient registration fee as NT$50
Chinese Taipei
Case:
Chang Hua Doctors Association of Chinese Medicine held a meeting to set a uniform price on out patient registration fee as NT$50
Key Words:
No competition in prices, to refrain from fair competition
Reference:
Fair Trade Commission Decision of May 29, 1996 (241st Commission Meeting); Disposition of (85) Kung Chu Tsu 111
Industry:
Medical health service (8249)
Relevant Laws:
Article 19(iv) of the Fair Trade Law
Summary:
1. Chang Hua County Government filed an inquiry to the Fair Trade Commission in the following:
Chang Hua Doctors Association of Chinese Medicine passed a resolution in setting a uniform price on the health insurance out patient registration fee as NT $50 at its 2nd plenary of the 16th meeting. Whether did such resolution violate the provisions of the Fair Trade Law.
It was found that after Chinese Taipei implemented the national health insurance policy, the medical industry thought the medical treatment expenses paid by the Central Health Insurance Bureau were too low. Therefore, they hoped to increase their revenue by charging registration fees. At the initial implementation of the national health insurance policy, several medical hospitals or clinics charged high registration fees. Thus, there were negative responses from the private sectors. However, the Department of Health in Chinese Taipei thought the registration fee was not part of medical treatment expenses, so there were no laws to regulate it. Thus, the Department of Health negotiated with the Doctors Association to set up the ceiling registration fee. Among them, the registration fee for ordinary district clinics was limited not to exceed NT$50. In other words, the purpose was to lower the ceiling registration fee, and not to raise the registration fee. The Department of Health hoped that the medical industry can freely determine their own registration fee under the ceiling fee.
2. Because this case involved the national health insurance policy and the relevant matters of medical treatment, it was found after the investigation by the Fair Trade Commission that among the current medical laws, only the National Health Insurance Law and the Medical Treatment Law had regulations on registration fee. However, in Article 39 of the National Health Insurance Law, it only states that registration fee is not an item to cover by the health insurance, and in Article 17 of the Medical Treatment Law, it only states the standards of medical treatment charges. There were no provisions which expressly indicate whether registration fee was part of medical treatment expenses. Therefore, Chang Hua Doctors Association of Chinese Medicine, by holding a meeting for the purpose of setting a uniform health insurance out patient registration price in Chang Hua district as NT$50, while not exceed the upper limit established by the Department of Health, it did not comply with the original negotiation intent of the Department of Health with the Chang Hua Doctors Association. Further, the Department of Health also clearly replied to the Commission that the resolution of the negotiation between the Department and Chang Hua Doctors Association of Chinese Medicine did not conclude to set the uniform out patient registration fee for the Chang Hua Doctors Association of Chinese Medicine.
3. Article 19(iv) of the Fair Trade Law states that an enterprise shall not commit any of the acts causing, by coercion, inducement with profit, or other improper means, another enterprise to refrain from competing in price, or to take part in a combination or a concerted action which is likely to impede fair competition. It was also found that Article 9 of the Medical Doctors Law states that: "Medical Doctors who have not joined the local medical doctors association cannot practice medicine." In this case, the doctors of Chinese medicines in Chang Hua County are horizontally competing with one another. To conform with the decisions of the Department of Health, the Association took advantage of its special decision and leadership status, by its resolution at the 2nd plenary of the 16th meeting to set the registration fee which originally should have been decided by each medical institute, in uniform as NT$50. In addition, after the meeting, it sent the resolution by letters to every member for compliance. Such act indeed refrained other enterprises from competing in price by improper means, thus sufficiently impeding fair competition of the medical service market of Chinese medicine in Chang Hua district and violating Article 19(iv) of the Fair Trade Law.
Summarized by Lai, Mei-Hua
Supervised by Lin, Yo-Ching
＆: For information of translation, click here
[Browse by APEC Member
Economies] [Browse by Subject Categories] [Home]
[Decisions] [Approvals] [Interpretations] [Administrative Guidance]