Watchdog considers $1.6 billion merger of pathology testing companies

The RACGP says the merger will disadvantage GPs and patients.

The RACGP is urging the national consumer watchdog to stop Australian Clinical Labs taking over Healius Pathology, on the grounds a pathology testing supergroup would harm GP practices with co-located collection centres. 

The college made the plea to the ACCC, which is investigating the impact on bulk-billing and prices if Australian Clinical Labs is allowed to purchase all Healius shares.   

Australian Clinical Labs is responsible for more than 12 million pathology tests a year and is one of three major players, alongside Healius — which it is bidding to take over — and Sonic Healthcare Australia. 

RACGP president Dr Nicole Higgins said, if two of the three merged, it would be harder for smaller players to compete, and easier for Australian Clinical Labs to raise prices.