The AMA has lost its battle to stop a buying group for private health funds, with the competition watchdog finding no evidence it would lead to “US-style” managed healthcare.

The approval paves the way for health fund nib and analytics firm Honeysuckle Health to collectively negotiate and manage contracts with doctors, hospitals and other healthcare providers on behalf of other insurers that join the group.

In its decision released on Tuesday, the Australian Competition and Consumer Commission (ACCC) authorised the buying group to operate for five years until October 2026.

The joint venture would likely deliver lower insurance premiums and improved services to consumers through increased competition, it said.