Network Healthcare Holdings Limited - Court Suspends Regulations
Release Date: 01/06/2004 17:43:48 Code(s): PWK NTC
NETWORK HEALTHCARE HOLDINGS LIMITED - COURT SUSPENDS REGULATIONS
NETWORK HEALTHCARE HOLDINGS LIMITED
(Co. Reg. No. 1996/008242/06)
Code: NTC
ISIN number: ZAE000011953
(`Netcare`)
COURT SUSPENDS REGULATIONS
Following the announcement to shareholders on 27 May 2004 relating to Netcare
and other parties bringing a court action to suspend the pricing regulations,
the High Court of South Africa (Cape of Good Hope Provincial Division) today
granted an order that a hearing will be convened on the 17th and 18th June
2004.
Furthermore, the court ordered that:
`Pending determination of the applications by this court, wholesalers,
distributors and retailers shall not be obliged to sell medicines and scheduled
substances or charge dispensing fees in accordance with the regulations
published in Government Notice R553 of the Government Gazette of 30 April 2004.`
Netcare views this as a significant victory for all patients!
The intention to reduce medicine prices remains paramount but should be
predicated on a fair process with transparency and adequate consultation.
In Netcare`s opinion real reductions can only be achieved by removing the cross
subsidisation on tender drugs and establishing a fair and reasonable single exit
price from manufacturers which could be achieved by central group buying for all
SADEC countries to reduce the high cost of drugs to all patients.
Netcare repeats its request for a healthcare CODESA to resolve the challenges
facing the healthcare industry in the best interests of all South Africans.
As always, Netcare`s doors remain open for frank and open discussions in order
to find sustainable solutions.
1 June 2004
Sponsor
Merrill Lynch South Africa (Pty) Limited
For further information: Dr Jack Shevel
Tel: (011) 301 0202
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