Planned merger between two southern Dutch hospitals requires further investigation
The planned merger between two hospitals in the southern part of the Netherlands, Stichting Lievensberg Hospital in the city of Bergen op Zoom and Stichting R.K. Hospital St. Franciscus in the city of Roosendaal, potentially restricts the options for patients (current and future) and health insurers. That is why the Netherlands Authority for Consumers and Markets (ACM) decided that this merger requires a license. If these hospitals apply for a merger license, ACM will launch an investigation into the planned merger’s effects on patients and health insurers.
If these hospitals were to merge, they would attain a strong position in the western part of the southern province of Noord-Brabant. Chris Fonteijn, Chairman of the Board of ACM comments: ‘The preliminary investigation has revealed that patients of each of these hospitals see the other one as their first or second alternative. The planned merger would therefore limit the options for these patients and for health insurers.’
A key question in a possible in-depth investigation is whether health insurers are able to negotiate the best possible price-quality ratio from the merger hospital for their customers. Health insurers are optimistic about this. However, the Federation of Patients and Consumer Organizations in the Netherlands (NPCF) informed ACM in its opinion that it has its doubts.
As always, ACM consulted with the Dutch Healthcare Authority (NZa) in its preliminary investigation.
When reviewing mergers and acquisitions, ACM assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. Were that to happen, ACM could attach conditions to the planned concentration or block it altogether. It is prohibited to proceed with a concentration before ACM has ruled on it.