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ACM: further investigation needed into merger between Bergman Clinics and NL Healthcare Clinics

 

NL Healthcare Clinics and Bergman Clinics need to apply for a license first before proceeding with their planned merger. The Netherlands Authority for Consumers and Markets (ACM) has come to this conclusion after a first investigation. Bergman Clinics and NL Healthcare Clinics are independent treatment centers, focusing on specialist medical care that is plannable and less complex. Following its investigation, ACM has come to the provisional conclusion that there are indications that, after the concentration, the bargaining position of health insurers may deteriorate vis-à-vis that of the merger parties. That could result in the merger parties being able to charge health insurers higher prices after the concentration, thereby raising the possibility that the insured could face higher premiums. That is why ACM wishes to conduct a more extensive investigation into this planned concentration.

Background

Earlier this year, Malenstein Holding B.V. and NPM Capital N.V. notified ACM of their plans to concentrate the activities of Bergman Clinics and NL Healthcare Clinics. Bergman Clinics has 25 locations in the Netherlands. NL Healthcare, together with subsidiaries such as Zonnestraal, Orthopedium, Dermicis, Medinova and NedSpine, has 18 locations. They predominantly offer plannable, specialist medical care in dermatology, orthopedics, and ophthalmology.

In the investigation, the five health insurers involved raised objections against this concentration. Based on its investigation, ACM has established that Bergman Clinics and NL Healthcare Clinics are the largest independent treatment centers in the country. With regard to orthopedic care and eye care, they offer approximately half of the total care offered by independent treatment centers in the Netherlands.

ACM has found indications that, to a group of insured that is critical to the health insurers, it is important that the option of being able to visit an independent treatment center is included in the selection of insurance policies. To this particular group, hospitals appear to be far less of an alternative. As a result, health insurers run the risk of losing more insured after the concentration if they do not sign contracts with these providers. This can strengthen the bargaining position of the merger parties, and it can enable them to compel health insurers to pay higher prices, and purchase more care.

Following these provisional findings, ACM will launch a follow-up investigation if the merger parties decide to apply for a merger license. Based on the follow-up investigation, ACM will decide whether or not the concentration is allowed.

ACM’s merger control

ACM enforces fair competition between companies, and prevents the abuse of market power. When assessing mergers or acquisitions, ACM assesses in advance whether companies that wish to acquire or merge with another company do not gain too much market power. That is how ACM protects competition and consumers.