ACM clears merger between three northern care providers

The Netherlands Authority for Consumers and Markets (ACM) has cleared the merger of three care providers in the northern Dutch province of Friesland, which are Kwadrantgroep, Antonius Zorggroep and Nij Smellinghe/Pasana. These three care providers offer care services such as home care, domestic care, and have multiple assisted-living facilities and nursing homes. They also have several hospitals: the Antonius Hospital in the towns of Sneek and Emmeloord, Nij Smellinghe in Drachten and De Sionsberg in Dokkum.

After an extensive investigation, ACM has come to the conclusion that, as a result of the merger, competition will be not be affected significantly, as hardly any competition currently exists between these three competitors. The clients of these care providers largely come from different geographical areas. Clients and health care buyers will continue to have enough options after the merger.

In its investigation into the planned merger, ACM has consulted with various competitors, health care buyers (including health insurers), patient organizations, and client councils. These organizations confirm ACM’s conclusion.

However, health insurer De Friesland did express some concerns about the merger. It argued that its bargaining options will decrease, as the merger will result in fewer hospitals in the province of Friesland. ACM’s market analysis has revealed that, due to developments in hospital care, hospitals outside of Friesland will exert competitive pressure on the merging parties, too. As a result, health insurers will have enough providers to negotiate with for buying health care services for their customers.