The Commerce Commission has authorised the merger of Palmerston North private hospital operations Southern Cross Hospitals and Aorangi Hospital.
If the merger goes ahead, there will be only one provider of private hospital services in the city.
The commission says the merger will reduce competition in private elective surgery and may lead to some price rises.
However the majority of patients would be protected from price increases, it says, as their procedures would be funded by ACC or through fixed-price arrangements between insurance companies and the private hospital.
