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The Competition Authority issues instructions to the Minister of Health and Insurance

12 October 2005
Snowcap Mountain

The Icelandic Psychological Association has demanded that the Competition Authority rule that healthcareand the Ministry of Health and Social Affairs enter into an agreement with clinical psychologists regarding public participation in the cost of psychological treatment for insured patients that does not involve the administration of medication. Reference is made to the fact that the ministry has entered into an agreement with psychiatrists regarding state participation in the cost of comparable treatment for those with private medical insurance, and that it is undisputed that psychologists and psychiatrists operate in the same market in this respect. The competitive position of clinical psychologists is therefore impaired if the state participates in the cost of insured patients' treatment by psychiatrists, but not in the cost of treatment by clinical psychologists.

In the decision of the Competition Authority, No. 8/2005, the assessment states that the decision of the Ministry of Health- and the decision of the Ministry of Health and Insurance to not enter into agreements with self-employed clinical psychologists regarding the participation of those with health insurance in the aforementioned psychological treatment, disrupts the competition that can exist between psychologists and psychiatrists and goes against competition law.

The Competition Authority considers that there is a competitive distortion in the public funding of the costs incurred by insured individuals for certain talking therapy provided by self-employed psychiatrists, but not for the costs arising from comparable talking therapy by self-employed clinical psychologists in similar cases. Although it is clear that the Minister for Health and Insurance has the statutory duty to manage the procurement and provision of public health services, he must take into account competition considerations and the provisions of competition law, unless otherwise provided for by statute. This is not the case here. The health authorities are permitted to decide whether a particular health service should be purchased from independent specialists or provided entirely by public health institutions. However, if the health authorities decide that the public sector should purchase services from independent specialists working outside healthcare institutions, or contribute towards the costs incurred by those with private health insurance for their services, the authorities must ensure equality of treatment for all specialists operating in the same competitive market. Otherwise, this constitutes a case of competitive discrimination.

Press release in PDF format (PDF document – Opens in a new window).

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