The Competition and Tariff Commission (CTC) has launched an investigation into CIMAS Medical Aid Society (CIMAS), one of Zimbabwe’s largest medical aid providers, over allegations of restrictive and anti-competitive practices in the health sector. The probe follows a complaint by Belnash Investments, trading as Harvey Brown Pharmacy, which was denied registration as a health service provider on CIMAS’s direct payment system.
According to reports, CIMAS denied Harvey Brown registration despite having similar service providers on its platform. Allegations have been made that CIMAS has a pharmacy close to Harvey Brown and has been indirectly referring clients to their pharmacy, potentially limiting healthcare choices for its members. The CTC is concerned that such practices, if true, would stifle competition and create unfair barriers for independent businesses.
The investigation comes amid growing calls for medical aid societies to divest from healthcare services, including clinics, diagnostic centers, and pharmacies, to standardize industry operations. The Government of Zimbabwe is moving to amend the Medical Services (Medical Aid Societies) Regulations to prohibit medical aid societies from owning, operating, or managing healthcare services, aiming to avoid conflicts of interest. The government aims to boost social development, ensuring everyone has access to quality healthcare, education, and other essential services through the National Development Strategy 2 (NDS2). This objective is part of the country’s broader vision to achieve an upper-middle-income society by 2030, focusing on key areas like healthcare infrastructure, education, and social protection.
The Association of Healthcare Funders of Zimbabwe (AHFoZ) has backed calls for a medical aid societies regulatory authority to address challenges targeted by the proposed amendment. The proposed changes seek to prohibit medical aid societies from diversifying into healthcare service provision and transition them to a risk-based capital model, strengthening financial oversight and sustainability within the sector.
The CTC emphasized that the commencement of the investigation does not imply that CIMAS has violated any laws, and interested stakeholders have been asked to make written submissions to the commission.
