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module menu icon Competition in healthcare

Certain practices undertaken within the primary care setting may also potentially breach competition law.

Perhaps the most common complaint that affects pharmacy owners relates to prescription direction, which occurs when GPs direct their patients to one particular pharmacy in preference to another. As the trend of GP practices taking a financial interest in pharmacies increases, so does the risk of prescription direction.

Prescription direction may amount to anti-competitive behaviour if the GP and pharmacy have entered into an oral or written agreement. However, the GP must also be considered to be an undertaking that engages in economic activity, which will be the case if it receives a payment
from, or has a financial interest in, the pharmacy.

Additionally, larger chain pharmacies are able to offer products and services to customers at reduced prices compared to those of their smaller competitors. This may be classed as anti-competitive behaviour if such pricing is set at a level with which smaller competitors are unable to compete.

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