Radiology joint venture declined

The Commerce Commission has declined to grant clearance to the formation of a joint venture between Hamilton Radiology and Medimaging.

Hamilton Radiology and Medimaging each provide x-rays, ultrasound and other low-tech services in Hamilton and Cambridge.

In the Waikato region, Hamilton Radiology and Medimaging are the only providers of MRI services.

"While the commission is satisfied the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the market for x-rays, ultrasound and other low-tech radiology services, we are not satisfied the same is true for the provision of MRI services in the Waikato region.

"This being the case, we must decline the application," says Commerce Commission chairman Dr Mark Berry.

The commission found that with the reduction of two MRI providers to one, difficult conditions of entry and no likely new entrants into the Waikato region, a significant number of patients would likely be adversely affected.

A public version of the written reasons for the decision will be available soon.