Has Sagicor become a monolopy for health?
The recent announcement of the purchase of Blue Cross by Sagicor Life Jamaica Limited seems to have bypassed all of the financial experts out there. I expected there to be some concern about the deal but so far everyone including the Financial Services Commission (FSC) is keeping quiet. Here is the problem as I see it.
The purchase of Blue Cross by Sagicor will give them an estimated 95% of the total health care market with the only other major provider being Medecus which is a relatively new company. This will result in Sagicor essentially being able to operate as a monopoly. Some may see this as a good thing and promote that the new company will operate more efficiently due to economies of scale. This concept is that a single larger entity should operate more cost effectively than two separate entities. There is truth in this concept because less staff is required, only one administrative and computer system is required and only one Head Office.
However, lower costs are not the reality in most cases. Companies who dominate the market often charge higher prices because there is no one to compete with them. They pass on these higher fees to customers who have no other options. Ask the civil servants about this, originally both Blue Cross and Sagicor competed for the business, with the proposed acquisition the two have effectively become one. This cannot be a good way to resolve what has been such a contentious issue. One only has to remember what the telecommunications market was like before Digicel.
The FSC is supposed to regulate the industry in order to protect the consumer. First we had alternative investments now we have a potentially dominant health service provider. If the FSC does not have the power to address these issues then it needs to be given that power. If it has the power then it should exercise it.
Feedback Question: Is the Financial Services Commission really looking out for the interest of the cucstomers?
Tags: budget, dollar, economic, economy, exchange, foreign, health, investment, jamaica, minister, ministry, recession, sagicor, tourists, U.S.
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12 Responses to “Has Sagicor become a monolopy for health?”
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Searched health in msn but for some reason found this page.great info
blue cross…
Well spoken. I have to research more on this as it is really vital info….
Rife machine…
I don’t recommend a lot of other blog posts but found this one today very interesting……
Wow! Thank you!
I always wanted to write in my blog something like that. Can I take part of your post to my site?
Of course, I will add backlink?
Sincerely, Timur I.
Your article was quite intriguing and the information quite useful. Will check your site often to see other great posts you make! Regards
Hello, I can’t understand how to add your blog ( gleanerblogs.com ) in my rss reader
Of course, what a great site and informative posts, I will add backlink – bookmark this site? Regards, Reader.
AS SUPPORTED BY THE DEVELOPER TOOLS? It was interesting. You seem very knowledgeable in your field.
Good work! Thank you very much!
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Cheers! Sandra. R.
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