The Commission for the Protection of Competition (CPC) had no legal impetus to block the purchase of a medical facility by a US investor, the agency said on Wednesday.

Commission chair Eva Panjari was speaking in the wake of Paphos mayor Phedonas Phedonos and other political leaders expressing concerns over a “health services monopoly” being carved out in the island’s sector.

Phedonos had also spoken out over the poor state of the Paphos hospital, accusing the government of irresponsibility after a child died and brought up the phenomenon of private hospitals selectively providing “money-spinning” services.

The US investor in question, CVC Capital Partners, through its Greek subsidiary Hellenic Healthcare Group had bought up first the Apollonion and Aretaio private hospitals in Nicosia. With its latest acquisition of the American Medical Centre (American Heart), also in Nicosia, the company acquired just under 40 per cent of the market share, Panjari told the CyBC, and was thus not in violation of any anti-monopoly regulation.

Following Phedonos’ accusations to media, the CPC had put out a statement saying that the independent body operated apart from any opinions of “private or public entities”.

“The commission decides on a legal [case-by-case] basis and the buy-out of the American hospital that came before us was examined in detail, in terms of number of beds and how many patients had received treatment, both in and out of the Gesy [state healthcare] system,” Panjari said.

Apollonion and Aretaio now operate under Gesy, while the American is to remain private, according to projections.

There is no top ceiling for what share of the market any buyer can take over and the matter rests on how competition is playing out at any given moment, she said.

“With the data we had before us when the buy-out happened, there was no reason for it to stop. We had no data showing that competition was compromised,” Panjari said.

Additionally, the size of the market dictates limits to competition, she said.

“It does not depend on us to what degree anyone can purchase a hospital in or out of Gesy.”

She added that Okypy [the state health service organisation] has a 55 per cent share which is the “lion’s share”, she said. Moreover, the responsible authority for regulating the health sector was the state health insurance organisation (HIO).

“Cyprus is a small country and we can’t have loads of hospitals,” Panjari continued, likening the island’s health facilities to its airports and ports.

“Monopolies or oligopolies may emerge in certain sectors as long as they don’t abuse their dominant position.”